Telefonica not too long ago offered its Argentine operation as a part of its technique to scale back its publicity in Latin America
Spanish telco Telefónica has finalized an settlement to promote 67.5% of its Colombian unit Coltel— which it operates below the Movistar model — to Millicom for about €368 million euros ($400 million).
Along with buying Telefónica’s stake, Millicom has additionally introduced a proposal to buy the remaining 32.5% of Coltel, at present owned by the Colombian authorities and different buyers. If profitable, Millicom would achieve full management of the corporate, increasing its footprint within the home telecom market.
“This transaction strengthens our presence in Colombia, and with this strategic transfer, Millicom reaffirms its ongoing dedication to increasing connectivity and protection, accelerating digital transformation, and actively contributing to Colombia’s continued development and competitiveness,” Millicom CEO Marcelo Benítez stated in a press release.
The deal is a part of Telefónica’s ongoing efforts to scale back its publicity in Latin America, a method that started in 2019 and has since led to a number of asset gross sales throughout the area. Earlier this yr, the corporate introduced the sale of its Argentine subsidiary to rival Telecom Argentina for $1.245 billion.
The acquisition of Telefonica Argentina by Telecom Argentina should now be reviewed by Argentina’s telecommunications companies watchdog ENACOM and the Nationwide Fee for the Protection of Competitors (CNDC). ENACOM has already said that regulatory measures are in place to stop monopolistic constructions, emphasizing the significance of making certain market competitors.
The Argentine authorities additionally introduced that it’s going to examine the acquisition to find out whether or not it creates a monopoly. The Workplace of the President had launched a press release warning that “70% of telecommunications companies can be managed by a single financial group, making a monopoly shaped due to many years of state advantages.”
There have additionally been speculations about doable exits from Mexico and Uruguay, reinforcing Telefónica’s shift in direction of prioritizing its core markets: Spain, Germany, the U.Ok. and Brazil.
Regardless of these divestments, Telefónica’s Hispam division- which incorporates all of its Latin American operations besides Brazil- stays a major income generator. In 2024, the unit reported 9.032 billion euros in income, accounting for 22% of Telefónica’s whole earnings and reflecting a 7.8% improve in comparison with 2023.
The transaction stays topic to regulatory approvals, in addition to agreements with Colombia’s Ministry of Finance and Colombian utility agency EPM.
