Millicom has joined the list of candidates interested in acquiring Telefónica’s subsidiary in Chile, in a process that could redefine the competitive landscape of the Chilean mobile market and further the restructuring of the Spanish telecommunications company’s assets in Latin America.

The possible entry of the group, present in the region under the Tigo brand, adds to the already known interest of América Móvil and Entel, although for now, there is no guarantee that any of these approaches will result in a definitive offer.

As reported by Bloomberg, Millicom has expressed preliminary interest in Telefónica Chile and is evaluating the possibility of submitting a bid for the business. The transaction would mark Millicom’s entry into a new mobile market in the region, where it has already benefited from Telefónica’s wave of divestments in recent years.

Telefónica accelerates its repositioning in Latin America

In the latter part of 2025, Millicom completed the purchase of Telefónica’s units in Uruguay and Ecuador, strengthening its regional footprint and consolidating a growing relationship between the two groups.

At the same time, an agreement for the joint acquisition of assets in Colombia is still pending regulatory approval, fitting in with Telefónica’s strategy of simplifying its presence in Latin America and freeing up resources for other priority markets.

América Móvil and Entel are also among the potential buyers of Telefónica Chile, although their initial plan to submit a joint bid has been abandoned, and each group is now exploring the option of bidding separately. The breakup of this alliance opens the door to a more fragmented bidding scenario, in which Millicom is positioned as a third major player.

Data from GSMA Intelligence ranks Entel as Chile’s largest mobile operator, with 10.3 million connections in the fourth quarter of 2025. Behind it are the operations of América Móvil, Telefónica, and Novator, with a base of between 5 and 5.6 million lines each, which makes for a highly competitive market in which any M&A operation would have a direct impact on market share and network investment capacity.

In a communication to the stock market regulator in October 2025, Telefónica Chile confirmed that its parent company had initiated a “strategic evaluation process” of the business, which could lead to a sale. For now, the analysis remains open, and no agreement has been formalized, so the interest of Millicom, América Móvil, and Entel is in a preliminary phase of exploring scenarios.

Separately last month, Telefónica Tech, the digital services division of the carrier, reached an agreement to sell its operations in Colombia, Mexico, and Chile to Spanish technology firm Hiberus.