4 key Telefónica divestments that are reshaping its LATAM strategy

May 22, 2025 10:06 AM

Telefónica has ramped up its withdrawal from Latin America, announcing a series of significant divestments across the region in a bid to streamline operations and reduce debt.

Here is a roundup of all the key moves of the year so far:

Uruguay- sold to Millicom for $440 million

Telefónica has agreed to sell its mobile business in Uruguay, Telefónica Móviles del Uruguay S.A., to Millicom International for $440 million.

As a result, Millicom will take full ownership and expects the deal to improve cash flow by 2026 through cost savings and better integration with its other operations in the region.

The purchase also brings immediate growth, long-term value, and lower risk due to Uruguay’s stable economy and strong credit rating.

Argentina - sold to Telecom Argentina for $1.25 billon

Earlier this year, the telecoms giant sold its Argentine business to Telecom Argentina for $1.25 billion.

At the time, the company said the deal is “part of the group’s strategy to reduce its exposure to the region and continue operating in a sustainable manner to build value for its shareholders.”

Peru - sold for $1.02 million amid bankruptcy

In February this year, Telefónica agreed to sell its bankrupt Peruvian unit to Argentina’s Integra Tec International for about $1.02 million (€900k).

Telefónica del Perú, 99.3% owned by the Spanish parent, blamed tax issues and government decisions for its troubles, saying they put it “in competitive disadvantage” even though it was the country’s largest telecom provider.

The move comes after the telecom giant filed for bankruptcy protection for its Peruvian unit , following a €314 million non-cash write-down by the parent company.