Millicom has closed its acquisition of Telefonica’s Nicaraguan operations.
In February, Millicom struck a $1.7 billion deal to purchase three of Telefonica’s Central American businesses and fold them into its Tigo operation in the region.
Millicom is also set to acquire Telefonica’s Panama and Costa Rica operations, although these acquisitions are still under review by the respective regulators. At the time of signing, Millicom noted that it expected regulatory approval to be granted for all markets by H2.
Movistar Nicaragua is the country’s market leader, and its 4 million customers will be added to Millicom’s local Tigo unit. This significant mobile presence will be aligned with Millicom’s strong cable footprint in the country, allowing for greater fixed-mobile convergence. The combined unit’s 4G coverage will extend to 51% of the country’s population.
Telefonica’s decision to sell three Central American units to Millicom came amid speculation that it could sell up entirely in the region. This is supported by another deal struck this year selling two Movistar units – in El Salvador and Guatemala - to America Movil.
Millicom is looking to shore up its dominance in Central America, spreading across different markets and adding more services to its offering as part of its “mission to build digital highways and connect more users and communities throughout the region”.
