Operators

Telefonica finally able to sell Mexico business

Telefonica finally able to sell Mexico business

International operator Telefonica has announced that it will sell its Mexican business to a consortium in a deal that values the operations at US$450 million.

As Reuters reports, Telefonica is selling the business to Melisa Acquisition, a consortium led by telecom tech firm OXIO and asset manager Newfoundland Capital Management.

Founded in 2018, OXIO describes itself is the world’s first telecom-as-a-service platform, creating innovation opportunities as well as time and cost efficiencies for MVNOs, mobile operators, and businesses delivering connectivity across the telecom ecosystem.

As for Telefonica, this agreement is the latest stage in it exit from its non-core businesses so that it can focus on consolidating in Europe, notably its businesses in Spain, Brazil, the UK and Germany.

In late 2019, it announced plans to withdraw from many of the markets in Latin America, but it has taken time.The exit from Mexico in particular seems to have been problematic due to a dispute over tax arrears worth about US$250 million that was being litigated at the country's Supreme Court.

Now, however, the company has disposed of most of its units across Latin America, most recently in Chile, Colombia and Mexico, though it has also exited Argentina, Peru, Ecuador and Uruguay.

Only Venezuela remains out of Telefonica's non-core businesses in Latin America. Reuters notes that CEO Marc Murtra said in January that the roadmap to exit Venezuela was unchanged despite the US arrest of President Nicolas Maduro, which took place early that month.



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