Telefónica sells its subsidiary in Ecuador to Millicom for €330 million.

Telefónica has reached an agreement with the Luxembourg group Millicom for the sale of 100% of its stake in Telefónica Ecuador, in a deal valued at 380 million US dollars (approximately 330 million euros, according to the current exchange rate), according to a statement sent late on Friday to the National Securities Market Commission (CNMV).

The transaction is subject to the usual adjustments in such operations, including obtaining the necessary regulatory approvals. The sale is part of Telefónica’s policy aligned with its strategy to reduce exposure to Latin America. This is the fifth sale by the company chaired by Marc Murtra in the American subcontinent, following the completed sales in Peru and Argentina, and the pending sales of the subsidiaries in Colombia and Uruguay. After this sale, Telefónica will only be present in Latin America in Mexico, Chile, and Venezuela, in addition to Brazil, although the latter market is considered strategic along with Spain, the United Kingdom, and Germany, so it is not subject to sale.

Telefónica Ecuador, operating under the commercial brand Movistar, is currently the second mobile operator in the country, with a market share close to 28% and a customer base of approximately five million at the end of March 2025. The market leader is Claro, owned by América Móvil of Carlos Slim (54%), and the local operator CNT (18%).

Although based in Luxembourg, Millicom is an investment group with a presence in the telecommunications sector in several Latin American countries through its brand Tigo. Specifically, the Spanish company announced last May the sale of its subsidiary in Uruguay to Millicom for 440 million dollars (389 million euros at the current exchange rate). Previously, in July 2024, it also sold its 67.5% stake in its subsidiary Colombia Telecomunicaciones (Coltel) to Millicom for 400 million dollars (368 million euros). In 2019, the Luxembourg group acquired the subsidiaries in Costa Rica, Panama, and Nicaragua from Millicom for a total of 1.65 billion dollars, although the sale of Costa Rica was later halted due to disagreements over valuation. Finally, Telefónica sold that subsidiary to Liberty in August 2021 for 455 million euros.

The operation in Ecuador is subject to the approval of the country’s regulator, which may impose conditions or even halt the transaction if it believes it infringes on free competition. However, Millicom does not operate in Ecuador, so no obstacles to the sale are expected from the authorities.

Telefónica sold its subsidiary in Argentina to Telecom Argentina—controlled by the media group Clarín and the Fintech fund—for about 1.19 billion euros on February 24. On April 13, it announced the sale of its subsidiary in Peru to the Argentine firm Integra Tecc International for 900,000 euros, including assuming debt of 1.2 billion.

Millicom’s Position

Millicom, for its part, stated in a press release that this operation “significantly strengthens Millicom’s regional presence and commercial reach, laying the foundation for innovation, digital inclusion, and sustained long-term growth.” “The telecommunications sector in Ecuador, backed by a constant expansion of mobile and broadband services and a committed regulatory environment, offers an attractive platform for Millicom to drive digital transformation,” the company added.

In that regard, Millicom’s CEO, Marcelo Benítez, emphasized that the acquisition of Telefónica’s subsidiary in Ecuador reflects his company’s long-term confidence in Latin America. “Ecuador offers a dynamic and growing digital market within a stable and dollarized economy, making it an ideal complement to Millicom’s strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification, and long-term value creation,” he noted.