Telefonica sells Uruguay unit to Millicom

Details: Manny Pham; Category: Operators; 22 May 2025; 8208 views

Telefonica has taken another step in its strategic withdrawal from Latin America, agreeing to sell its entire stake in its Uruguay operations to Millicom for US$440 million.

Operating under the Movistar brand, Telefonica was Uruguay’s second-largest mobile operator with a 29% market share. The deal marks the latest in a series of divestments from Spanish-speaking Latin American markets.

Earlier this year, Telefónica sold its Argentina unit for US$1.25 billion, followed by exits in Colombia and Peru, which fetched US$400 million and US$1 million, respectively. The company has also reportedly appointed advisors to explore sales of its businesses in Chile and Mexico.

Telefonica began scaling back its presence in the region in 2019, redirecting its focus toward more profitable core markets, including Spain, Germany, the UK, and Brazil.

Millicom, which operates under the Tigo brand in several Latin American countries, said the acquisition will strengthen its position across the region. The company expects the transaction to be cash-generative by 2026, delivering “immediate scale benefits, enhanced synergies, and long-term value creation” across its regional footprint.

Millicom described Movistar Uruguay as a profitable mobile operator with infrastructure that complements its existing operations in Paraguay and Bolivia.

Millicom CEO Marcelo Benítez commented: “This acquisition represents a key milestone in our purposeful growth strategy across Latin America — especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda. We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”