Spanish telecoms giant Telefónica has sold its Argentina business to Telecom Argentina for $1.2 billion as part of its ongoing strategy to gradually reduce its presence in Latin America.
The telecoms giant, which signed and finalised the deal yesterday [24 February 2025], revealed the move would speed up the expansion of 5G and fibre-optic networks while strengthening broadband and mobile phone coverage.
In a statement, the company said: "Argentina will have digital infrastructure of international level and quality, boosting the development of important sectors of the economy.”
This deal is the first corporate transaction by the company since Marc Murtra assumed the role of CEO in January, succeeding Jose Maria Alvarez-Pallete.
Subscribe today for free
However, the deal has raised concerns in Argentina, where President Javier Milei's office released a statement warning that it would take necessary steps to prevent the “generation of a monopoly formed thanks to decades of state benefits”.
"This acquisition could leave approximately 70% of telecommunications services in the hands of a single economic group," the statement read. "The state will take all pertinent measures to avoid this."
Recently, Telefónica has refocused its strategy on core markets in Spain, Britain, Brazil and Germany as part of its efforts to cut debt and enhance profitability.
Over the years, it has sold its subsidiaries in Guatemala and Costa Rica and finalised an agreement to transfer its Colombian branch.
Earlier this month, the company announced that its Peruvian unit would seek bankruptcy protection.
RELATED STORIES
