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Telefónica, the Spanish telecommunications giant, has sold its Argentine subsidiary to Telecom Argentina for $1.245 billion. This move is part of Telefónica's strategy to reduce its exposure in Latin America and focus on core markets. The transaction has raised concerns in Argentina, where President Javier Milei has indicated that measures will be taken to prevent the formation of a monopoly, as the deal could concentrate approximately 70% of the country's telecom services under a single economic group.
This sale is the latest in a series of divestitures by Telefónica in the region, including the recent bankruptcy filing of its Peruvian unit and potential asset sales in Mexico and Colombia. The company aims to reduce its debt and invest in 5G technologies. Following the announcement, Telefónica's shares rose by 1.5%, while Telecom Argentina's shares increased by 3.4%.
The deal underscores the challenges faced by foreign telecom operators in Latin America, where economic instability and hyperinflation have prompted companies to reassess their investments. It also highlights the ongoing consolidation in the Argentine telecom market, which could have significant implications for consumers and competition.
