- Millicom acquires 100% of Telefónica’s Uruguay operations, enhancing its Latin American footprint.
- The sale aligns with Telefónica’s focus on core markets: Spain, Brazil, Britain, and Germany.
Millicom to take over Telefónica’s Uruguay operations
Telefónica has agreed to sell its Uruguay-based mobile subsidiary, Telefónica Móviles del Uruguay S.A., to Luxembourg-based Millicom International Cellular S.A. for $440 million. The deal grants Millicom full ownership of Telefónica’s operations in Uruguay, further solidifying its presence in Latin America under the Tigo brand.This transaction follows Telefónica’s recent divestments in Peru and Argentina, where the company reported an accounting loss of $1.93 billion in the last quarter. The company has not specified whether the Uruguay sale will result in a similar capital impairment.
Millicom, which has a strong regional focus in Central and South America, said the acquisition would immediately enhance its scale in Uruguay and unlock long-term operational synergies. The company expects increased cash flow by 2026 through integration efficiencies and cost savings.
Also read: Telefónica posts $1.4B loss on Latin America writedowns
Also read: Colombia flags concerns over Telefónica sale
Why it’s important
This deal marks another major step in Telefónica’s long-term strategy to streamline operations and focus resources on its four priority markets: Spain, Brazil, the UK, and Germany. The company’s exit from Spanish-speaking Latin America reflects a pivot towards markets with stronger growth prospects or higher returns on capital.
For Millicom, the acquisition aligns with its goal of regional consolidation. Uruguay becomes the latest in a series of Latin American investments aimed at building out its Tigo brand footprint. It follows a $1.65 billion share buyback programme and broader efforts to enhance shareholder value.
The sale also underscores the trend of telecom market consolidation in Latin America, where regional players like Millicom and América Móvil are expanding their influence as global giants recalibrate.
