Telefónica is in exclusive talks to sell its Mexican unit, as the Spanish carrier continues to slim down its operations in Latin America.

Reuters reported last week that Telefónica is in talks with Beyond ONE, the owner of Virgin Mobile Mexico, to sell the unit.

A sale is part of the Spanish carrier’s plans to slim down its operations and focus on its key markets, including Spain, the UK, Germany, and Brazil.

It comes after reports emerged earlier this year that the telco had stepped up plans to exit the Mexican market.

The carrier, which operates under the Movistar brand, is the second-biggest telco in Mexico, with more than 25 million customers.

A potential deal could value the Mexican business at $609.28 million, reports Reuters.

Beyond ONE acquired MVNO Virgin Mobile Latin America back in 2023 for an undisclosed amount.

Telefónica is slimming down its operations in Latin America, under an initiative pushed by chairman Marc Murtra.

Since taking over as chairman of the Spanish telco in January, Murtra has signed off a number of sales in Latin America, as the company focuses its attention on its European markets.

“Our priority will be Europe, Europe, and Europe; we will maintain our leadership position in Brazil as a core market, and we will focus on what we know how to do as an industrial operator,” Murtra said in April.

Earlier this year, the carrier sold its Colombian unit for $400m to Millicom. Just last month, Telefónica also confirmed plans to sell its Ecuadorian unit to Millicom Spain for $380m.

Telefónica sold its Peruvian unit for less than $1m to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2 billion the company spent to acquire the company back in 1994. In April, Spanish publication El Confidencial reported that Telefónica has hired Citi as an adviser to sell its Chilean business unit.

In February, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.2bn.