- Telefónica has sold its Peruvian unit, Telefónica del Perú, to Argentina’s Integra Tec International for approximately $1.02 million.
- The sale includes the assumption of €1.24 billion in debt by Integra Tec.
What happened: Telefónica offloads Peruvian unit
Telefónica has announced the sale of its Peruvian arm, Telefonica del Peru, to Argentina’s Integra Tec International for approximately $1.02 million (€900,000). This decision follows the unit’s recent bankruptcy filing, attributed to ongoing tax disputes and unfavourable administrative rulings that placed the company at a competitive disadvantage, despite its position as the largest telecom provider in Peru.
The acquisition deal includes the transfer of Telefonica del Peru’s substantial debts, amounting to €1.24 billion owed to the tax authority and bondholders. Integra Tec will also acquire the remaining 0.7% of shares held by minority investors, completing the transaction. The move is part of Telefónica’s broader strategy to reduce its footprint in Latin America, having previously sold its Argentine business to Telecom Argentina for $1.2 billion.
The transaction marks the first major corporate move since Marc Murtra became CEO in January 2025, succeeding José María Álvarez-Pallete. Telefónica’s recent challenges in Peru reflect a difficult operating environment for telecom companies in the region, exacerbated by regulatory pressures and financial constraints.
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Why it is important
The sale of Telefónica’s Peruvian unit is significant as it highlights the ongoing challenges faced by telecommunications companies in Latin America. The decision to divest comes after a series of operational difficulties, including legal disputes and financial liabilities that have hindered the unit’s performance. This case underscores the complexities of maintaining a competitive edge in a market marked by regulatory scrutiny and economic pressures.
Furthermore, the transfer of substantial debts to Integra Tec raises questions about the financial viability of the newly acquired operations. The burden of €1.24 billion in obligations may pose risks to Integra Tec as it seeks to stabilise and potentially grow the business in a challenging economic environment.
Telefónica’s strategic exit from Peru may also reflect a broader trend within the telecom industry, where companies are reevaluating their investments in regions facing operational difficulties. This move signals a shift in focus towards more stable markets, potentially reshaping the competitive landscape in Latin America’s telecom sector.
