Telefónica Moves Quickly on Argentina Sale as Slim and Others Show Interest
Telefónica is expediting the sale of its Argentine subsidiary, targeting completion by mid-2024. The Spanish telecom giant has received interest from five potential buyers, including América Móvil, owned by Mexican billionaire Carlos Slim.
Confidentiality agreements have been signed to facilitate the sharing of sensitive information, with non-binding offers expected soon. The deal could value Telefónica’s Argentine operations at approximately €1 billion ($1.034 billion), with JPMorgan advising on the process.
América Móvil, operating in Argentina under its Claro brand, already competes with Telefónica in mobile and fixed-line services. While Slim’s primary markets include Mexico, Brazil, and Colombia, América Móvil also has a strong presence across Latin America.
Other interested parties reportedly include France’s Iliad, owned by Xavier Niel, and U.S.-based Liberty Global, Telefónica’s partner in Virgin Media O2 in the UK. Local Argentine firms such as Grupo Werthein, Grupo Olmos, and Grupo Clarín have also been mentioned as potential bidders.
However, regulatory challenges could complicate any deal involving Clarín due to its control of Telecom Argentina, Telefónica’s main competitor in the country. This sale is part of Telefónica’s broader strategy to divest assets in Latin America.
Telefónica’s Strategic Moves in Latin America
In July 2024, it finalized a $413 million deal to sell its Colombian subsidiary to Millicom. Meanwhile, its Peruvian operations face significant challenges. Telefónica has initiated arbitration against Peru at the World Bank’s ICSID tribunal over a tax dispute dating back to 2002.
The company is seeking €1.122 billion ($1.16 billion) in damages from Peru’s tax authority for alleged arbitrary actions. These moves underline Telefónica’s efforts to streamline its portfolio amid financial and regulatory pressures.
They also highlight the company’s strategy to reshape its presence in competitive Latin American markets. Investors and industry players will closely watch these developments for their broader market implications.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief