Millicom to Acquire Telefónica's Uruguayan Operations for $440 Million

Deal News | May 21, 2025 | Globenewswire

Millicom International Cellular S.A. has entered into a definitive agreement to acquire 100% of Telefónica Móviles del Uruguay for an enterprise value of USD 440 million. This acquisition is a strategic move by Millicom to consolidate its leadership in South America, capitalizing on efficiency and integration with its existing operations in the region. Expected to be EFCF accretive by 2026, the acquisition will diversify Millicom's cash flow sources in Uruguay, a nation with a stable macroeconomic environment and an investment-grade credit rating. Anticipated synergies across network, operations, and commercial integration are expected to provide long-term value creation. The deal is subject to regulatory approvals but is seen as a step towards strengthening Millicom's digital ecosystem and furthering digital inclusion and development in Latin America.

Sectors

Telecommunications
Investment and M&A

Geography

Uruguay – The target company, Telefónica Móviles del Uruguay, operates in Uruguay, and the acquisition will enhance Millicom's presence in this geography.
South America – Millicom's strategic focus is on expanding its operations within South America, where both the acquiring and target companies have significant operations.

Industry

Telecommunications – The transaction involves the acquisition of a mobile network operator, which falls within the telecommunications sector.
Investment and M&A – This transaction is a significant acquisition involving corporate finance strategy and investment, characteristic of the M&A industry.

Financials

USD 440 million – Enterprise value of the acquisition of Telefónica's operations in Uruguay by Millicom.
0.1x – The anticipated temporary increase in Millicom's leverage due to the acquisition.

Participants

Name	Role	Type	Description
Millicom International Cellular S.A.	Acquiring Company	Company	A leading provider of telecommunications services in Latin America, expanding its footprint by acquiring Telefónica's operations in Uruguay.
Telefónica Móviles del Uruguay S.A.	Target Company	Company	The company being acquired by Millicom, it is the second-largest mobile operator in Uruguay.
Marcelo Benitez	CEO of Millicom	Person	Chief Executive Officer of Millicom, leading the company's strategic acquisition to enhance its leadership in Latin America.