Telefónica Sells Colombian Unit for $400 Million, Accelerates Latin American Exit

Spanish telecommunications giant Telefónica has finalized an agreement to sell its Colombian subsidiary to Millicom for $400 million. The deal, announced on March 13, 2025, marks another step in Telefónica’s strategic withdrawal from Latin American markets.

The transaction involves Telefónica Hispanoamérica selling its entire 67.5% stake in Colombia Telecomunicaciones, which operates under the Movistar brand. The deal price faces potential adjustments for debt evolution and currency fluctuations.

After adjustments, the final value may decrease to approximately $362 million based on September 2024 figures. Colombia’s government holds the remaining 32.5% stake.

Millicom has committed to offering the government and minority shareholders the same price per share. The company aims to acquire 100% ownership to strengthen its position in the Colombian market.

Telefónica explained this move aligns with its asset management policy to gradually reduce exposure in Latin America. The sale requires regulatory approvals from Colombian authorities and agreements with the Ministry of Finance and Public Credit.

This represents the second major divestment under new CEO Marc Murtra, who replaced José María Álvarez-Pallete in January 2025. Telefónica recently sold its Argentine operations to Telecom Argentina for $1.245 billion last month.

Telefónica’s Latin American Divestment Strategy

The telecom company began its Latin American divestment strategy in 2019. Telefónica has filed for bankruptcy protection for its Peruvian subsidiary and reportedly explores similar exits from Uruguay and Mexico.

Telefónica now concentrates on four core markets: Spain, Britain, Germany, and Brazil. This strategic shift aims to reduce debt, estimated at around €26 billion, and fund investments in 5G technology.

Millicom CEO Marcelo Benítez emphasized the acquisition strengthens their Colombian presence. “This strategic move reaffirms our commitment to expanding connectivity and accelerating digital transformation in Colombia,” Benítez stated.

Industry analysts view these divestments positively. The transactions help Telefónica focus on profitable markets while reducing exposure to regions with currencies weaker than the euro.

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