Telefonica has accelerated a pullback from Spanish-speaking Latin America as it refocuses the group on four principal markets, according to the companys revised strategy under CEO Marc Murtra. Management says profitability in many of the Spanish-speaking Latin American operations is below the groups cost of capital, prompting an intensification of disposals that follow an initial wave of Central American exits beginning in 2019.
After both an ownership change and a management reshuffle in 2024, Telefonica presented a new strategic plan in November and identified Brazil, Britain, Germany and Spain as the groups four core businesses. The refocus has translated into a string of agreed sales and completed exits across Latin America, as Telefonica narrows its operational footprint in the region.
Below are the developments within Telefonicas Latin America operations as reported by the company and disclosed in related announcements:
- Mexico - In July, Telefonica entered exclusive talks to sell its Mexican business to Beyond ONE, the owner of Virgin Mobile Mexico, according to three people familiar with the negotiations. In November, Murtra listed Mexico among the markets Telefonica planned to leave, without providing specific timelines or further details.
- Argentina - Telefonica said it agreed in 2025 to sell its Argentinian unit to Telecom Argentina for $1.245 billion.
- Peru - In 2025, Telefonica agreed to dispose of its Peruvian unit to Argentina's Integra Tec International for roughly 900,000 euros (about $1.04 million). The Peruvian unit had filed for bankruptcy protection in February. Telefonica also recorded material capital losses related to the Peru and Argentina disposals.
- Venezuela - At the group's Capital Markets Day in November 2025, Murtra included Venezuela among the markets slated for exit under the Latin America divestment plan. Earlier last year, the head of Telefonica Venezuela, Jose Luis Rodriguez Zarco, said the unit planned to invest $500 million over two years to expand 4G and 5G services.
- Colombia - Telefonica agreed in 2025 to sell its majority stake in the Colombian business to Millicom International for $400 million. In early February, the Spanish company completed the sale of 67.5% of Colombia Telecomunicaciones to Millicom Colombia.
- Uruguay - The company sold its Uruguayan unit to Millicom for $434 million.
- Ecuador - Telefonica sold its Ecuador unit to Millicom for $379 million.
- Chile - In February, Telefonica agreed to sell 100% of its mobile unit in Chile to French holding company NJJ and to Luxembourg-based Millicom, both associated with billionaire Xavier Niel, for a fixed consideration of around $1.22 billion.
- El Salvador - Telefonica sold its mobile unit in El Salvador in 2021 to General International Telecom in a transaction valued at $144 million.
- Panama - The Panama unit was sold in 2019 to Millicom for 536 million euros.
- Costa Rica - In 2020 Telefonica sold its Costa Rica unit to Liberty Latin America for $538 million.
- Nicaragua - Telefonicas mobile assets in Nicaragua were sold to Millicom in 2019 for an original cash consideration of $437 million.
- Guatemala - The company sold its Guatemalan operations to America Movil for 293 million euros in 2019.
- Brazil - Telefonica Brasil, the Sao Paulo-listed subsidiary, remains one of the groups four core businesses. In 2024 the unit carried out several smaller acquisitions, including cloud services firms IPNET and IPNET USA, for up to 230 million reais (about $41.49 million).
Telefonica disclosed that it booked 1.7 billion euros in capital losses in the first quarter on the sale of its Peru and Argentina units. The group has linked its divestment decisions to the relative economics of particular markets and the strategic desire to concentrate resources on those markets deemed core to the business.
The groups stepwise retreat in many Latin American markets builds on transactions that began in 2019 and continued through a mix of recent sale agreements and completed deals. Several buyers in the region have been Millicom and other regional and international telecom operators or investment groups.
Exchange rate references used in reporting the transactions are: $1 = 0.8393 euros and $1 = 5.1937 reais.
Telefonicas recalibration of its geographic focus follows a strategic review and leadership change. Management has set out a path to channel capital and operational effort into Brazil, Britain, Germany and Spain while reducing exposure where returns are judged insufficient versus the group's cost of capital.
As the company continues to implement its plan, the timing and finalization of remaining negotiations will determine the ultimate shape of Telefonicas presence across Latin America.