Millicom completes acquisition of Telefónica’s Colombian unit for $215m

Millicom International Cellular has successfully completed the purchase of Colombia Telecomunicaciones S.A. E.S.P. (Coltel), Telefónica’s subsidiary operating under the Movistar brand in Colombia, for $215 million.

This transaction, executed through a takeover bid, marks a strategic milestone for the Luxembourg-based operator, owner of Tigo, consolidating its position as the second largest player in the Colombian market.

The transaction, previously approved by local authorities, included the acquisition of 67.5 percent of Coltel’s shares at a price of 772 Colombian pesos per share, exactly in line with the target set between January 22 and February 4. Complemented by the recent purchase of 100 percent of UNE EPM Telecomunicaciones for $571 million, Millicom now integrates some 41 million mobile lines—adding those of Tigo (15.1 million) and Movistar (21 million)—positioning itself very close to the leader Claro, with 42 million.

Marcelo Brizi, Millicom’s CEO for the Andean region, highlighted that this merger will create an operator with greater scale, financial resilience, and investment capacity to deploy advanced networks, additional spectrum, and technologies such as 5G. The Superintendency of Industry and Commerce (SIC) conditioned the integration in November 2025 to preserve competition, ensuring benefits for users in terms of coverage and services.

The Colombian government still retains a 32.5 percent stake in Coltel, whose sale to Millicom is scheduled for April 2026, which could give the operator full control. Telefónica, for its part, is reducing its net debt by around €1.55 billion ($1.85bn) with this divestment, in line with its strategy of focusing on key markets.

This move strengthens the telecommunications ecosystem in Colombia at a key moment, driving investments that promise to improve digital connectivity in the country.

For Telefónica, the exit from the market is its latest in South America.

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

Also this week, the carrier finalized its $1.2 billion exit from Chile, selling to Millicom and French investment company NJJ Holding.