Telefónica, the Spanish telecommunications giant, is reportedly in exclusive discussions to sell its Mexican mobile unit to Beyond ONE, a Dubai-based company that owns Virgin Mobile Latin America. This move is in line with Telefónica’s strategic plan to exit Latin American markets. Earlier, the company had sold operations in Argentina, Peru, and Uruguay. Although discussions are advanced, no final agreement has been signed yet.
This potential sale to Beyond ONE would strengthen its presence in the Mexican market. It acquired Virgin Mobile Latin America in 2023, including operations in Mexico, Middle East, and Africa. The entity seeks expansion and the acquisition would be a stepping stone to deepen its market reach.
However, regulatory challenges might affect the completion of this deal. A newly proposed antitrust commission in Mexico could complicate the process by introducing new regulations. Such a commission would hold significant influence over telecommunications transactions.
Telefónica’s strategy is not a sudden action. The company has made several divestments in Latin America. In its ambition to streamline operations, it looks to strengthen its position in Europe, particularly in Spain, Germany, and the U.K. Chairman Marc Murtra believes this strategic refocus could enable better consolidation in the competitive European market.
Financial experts like Kepler Cheuvreux have speculated that the Mexican business could fetch approximately €520 million ($609 million). In 2023, Virgin Mobile held a 7.78% share of Mexico’s MVNO market.
In a similar vein, Telefónica has divested its Ecuador unit to Millicom for $380 million. This sale enhances Millicom’s regional scale and diversification. Earlier in March, Telefónica reached another agreement with Millicom regarding 67.5% of its Colombian unit, Coltel, for $416 million. Beyond simple sales, these actions aim to consolidate resources and optimize operations where market stability and growth potential appear promising.
