Millicom International Cellular and French investment firm NJJ Holding have closed the acquisition of Telefónica’s Chilean unit.

The deal, which is worth $1.2 billion, is Telefónica’s latest exit from a Latin American market as the Spanish telco continues to focus its attention on its European business.

As part of the JV acquisition, NJJ owns 51 percent of the unit, with the remaining 49 percent stake held by Millicom.

Telefónica will receive an initial closing payment of $50 million and be entitled to an additional earn-out consideration up to $150m based on structural value creation.

The carrier also finalized its exit from Colombia this week, selling to Millicom in a deal worth $215m.

The company’s exit from Chile brings an end to its presence in the country, where it has operated since 1990.

“This closing of a chapter is, above all, an opportunity to express our gratitude. To our employees, customers, suppliers, authorities, regulatory bodies, communities, and institutional and sectoral partners: thank you for being part of this journey,” said Alfonso Gómez, CEO of Telefónica Hispam.

“Telefónica leaves behind in Chile a robust operation, a modern infrastructure, and a platform ready for the new shareholder to continue driving the country’s digital development on solid foundations.”

“We are taking an option on a large and important market through a thoughtful structure that limits upfront risk, isolates leverage, and fully protects Millicom from recourse,” said Marcelo Benitez, CEO of Millicom. “It gives NJJ and Millicom operational control from day one and the ability to capture long-term upside at an attractive valuation, without compromising our financial strength.”

Since the appointment of Marc Murtra as CEO at Telefónica last year, the carrier has pushed to consolidate its operations down to key European markets – Spain, Germany, the UK – and Brazil, its only Latin American market.

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 of last year, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.2bn, while in November the carrier finalized the sale of its Ecuadorian subsidiary to Millicom for $380m.