14 April 2025

Spain’s Telefónica has reached an agreement to sell its 67.5% stake in its Colombian unit to Millicom in Latin America, for $400 million.

This transaction has been anticipated for some time, with reports as early as July 2024 indicating that Telefónica had signed a non-binding agreement with Millicom to explore the potential deal.

Telefónica has indicated that this move aligns with its strategic intent to gradually reduce its exposure to Latin American markets. The company has been actively divesting from various Latin American operations, citing lower returns compared to capital costs. Instead, Telefónica aims to concentrate on its businesses in Spain, Brazil, the UK, and Germany.

Newly appointed Chief Executive Marc Murtra has stated that the company intends to complete a strategic review by the end of this year. Recent activities have included the sale of its Argentine unit last month, as well as reports of initiating the sale process for its units in Mexico and Peru earlier this month.

In addition to these divestitures, Telefónica still operates in Chile, Ecuador, Uruguay, and Venezuela. However, the exits from Argentina, Mexico, and Colombia substantially reduce its presence in Latin America, where it has also divested its operations in El Salvador and Costa Rica.

This strategic pivot underscores Telefónica’s commitment to focus on regions with stronger growth prospects and improved returns, reflecting broader trends in the telecommunications industry as companies reassess their geographical portfolios.