Millicom (Tigo) to Acquire Telefónica’s Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Rhea-AI Summary
Millicom (TIGO) has announced a definitive agreement to acquire Telefónica Móviles del Uruguay for USD 440 million. The strategic acquisition is expected to be EFCF accretive by 2026 and will strengthen Millicom's presence in South America. The deal targets Uruguay, which boasts the highest GDP per capita in Latin America at USD 22,400 (2024) and maintains an investment-grade credit rating (BBB+).
The acquisition of Telefónica Uruguay, the country's second-largest mobile operator, will enable Millicom to leverage infrastructure and commercial synergies with its existing operations in Paraguay and Bolivia. The transaction will temporarily increase Millicom's leverage by approximately 0.1x. The mobile market in Uruguay has shown consistent growth of about 4% annually since 2022, driven by increasing postpaid adoption and the region's highest ARPU.
Positive
- Expected to be EFCF accretive starting in 2026
- Acquisition of second-largest mobile operator in Uruguay with nationwide coverage
- Significant synergies anticipated across network, operations, and commercial integration
- Uruguay offers highest GDP per capita in Latin America (USD 22,400) and investment-grade economy (BBB+)
- Mobile market growing 4% annually since 2022
- Only 0.1x temporary increase in leverage, indicating manageable financial impact
Negative
- Temporary increase in leverage by 0.1x
- Subject to regulatory approvals and closing conditions
- Significant capital investment of USD 440 million required
News Market Reaction
On the day this news was published, TIGO gained 0.38%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Millicom (Tigo) to Acquire Telefónica’s Operations in Uruguay for USD 440 Million, Expanding Presence in South America
Key Highlights:
- Acquisition strengthens Millicom’s presence and scale across South America.
- Expected to be EFCF accretive starting in 2026.
- Diversifies Millicom’s cash flow sources in a country with a favorable macroeconomic outlook and investment-grade credit rating.
- Significant synergies anticipated across network, operations, and commercial integration.
- Positive market outlook supported by a stable regulatory environment and strong mobile market fundamentals, providing a solid foundation for sustainable growth.
Luxembourg, May 21, 2025 — Millicom International Cellular S.A. (“Millicom”) today announced it has entered into a definitive agreement to acquire
Millicom expects the transaction to be EFCF accretive as early as 2026, driven by operational efficiencies and integration with its existing regional footprint. Upon closing, the company anticipates immediate scale benefits, enhanced synergies, and long-term value creation across its Latin American platform.
The transaction further diversifies Millicom’s cash flow sources, reducing overall risk supported by Uruguay’s stable macroeconomic environment and investment-grade credit rating (BBB+). The deal is expected to temporarily increase Millicom’s leverage by approximately 0.1x.
Strategic Rationale:
- Acquisition of a well-established, profitable mobile operator with nationwide coverage in Uruguay.
- Infrastructure and commercial synergies with Millicom’s existing operations in Paraguay and Bolivia.
- Strengthens Millicom’s digital ecosystem, enabling enhanced bundling and service innovation.
- Reinforces Millicom’s mission to accelerate digital inclusion and sustainable development in Latin America.
Marcelo Benitez, CEO of Millicom, stated: “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. 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.
Country Profile: Uruguay
- Highest GDP per capita in Latin America at USD 22,400 (2024), with a stable currency and investment-grade economy (BBB+).
- Politically and institutionally stable, offering a favorable regulatory environment for foreign investment.
- Telecommunications market includes three mobile network operators and a competitive fixed-line and pay TV landscape.
- Telefónica Uruguay is the second-largest mobile operator, operating in a stable and growing market.
- Mobile market growing approximately
4% annually since 2022, driven by rising postpaid adoption and the region’s highest ARPU. - Regulatory focus remains on quality of service and universal access.
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For further information, please contact:
| Press: | Investors: |
| Sofia Corral, Director Corporate Communications press@millicom.com | Michel Morin, VP Investor Relations investors@millicom.com |
About Millicom
Millicom (NASDAQ: TIGO) is a leading provider of fixed and mobile telecommunications services in Latin America. Through its TIGO® and Tigo Business® brands, the company provides a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 2025, Millicom, including its Honduras Joint Venture, employed approximately 14,000 people and provided mobile and fiber-cable services through its digital highways to more than 46 million customers, with a fiber-cable footprint over 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg with principal executive offices in Doral, Florida.
FAQ
How much is TIGO paying for Telefónica's Uruguay operations?
When will the TIGO-Telefónica Uruguay acquisition be EFCF accretive?
What is the current state of Uruguay's mobile market where TIGO is expanding?
What synergies will TIGO achieve from the Telefónica Uruguay acquisition?
How will the Telefónica Uruguay acquisition impact TIGO's leverage?
