Millicom International Cellular has announced an agreement to acquire Telefónica’s Uruguayan mobile unit for $440 million.

It represents another sale in Latin America for Telefónica, which has set out to consolidate its operations to focus on key European markets.

The agreement will see Millicom, which operates under the Tigo brand in Latin America, acquire 100 percent of the unit.

Millicom noted that the acquisition has potential infrastructure benefits for the company’s existing operations in Paraguay and Bolivia.

“This acquisition represents a key milestone in our purposeful growth strategy across Latin America — especially in Uruguay, a country with strong fundamentals and a forward-looking digital agenda,” said Marcelo Benitez, CEO of Millicom.

“We are committed to being a long-term partner in Uruguay’s digital development by investing in mobile infrastructure, improving service quality, and fostering innovation and talent development.”

The transaction remains subject to customary closing conditions, including regulatory approvals. Earlier this year, Millicom reached an agreement to acquire Telefónica’s Colombian unit for $400m.

Millicom acquired Telefónica’s Panamanian, Costa Rican, and Nicaraguan mobile units in 2019 for a combined $1.6bn.

Telefónica continues to divest

For Telefónica, the sale is the latest of several made across Latin America.

Last month, the Spanish telco sold its Peruvian unit for less than $1 million to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2bn the company spent to acquire the company back in 1994.

Last week, Spanish publication El Confidencial reported that Telefónica had 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, while it has also stepped up plans to sell its Mexican unit.

The Spanish carrier has been looking to consolidate its operations in Latin America since 2019 in a bid to cut overall debt and reduce exposure to currency swings.

Telefónica is currently looking to drive efficiencies in its home market and focus on its key European markets, including Spain, the UK, and Germany.