América Móvil and Entel Abandon Joint Bid for Telefónica Chile
December 5, 2025
In a significant development for Latin America's telecommunications sector, América Móvil and Chilean operator Entel have terminated their non-binding agreement to jointly acquire Telefónica's Chilean business unit. The move, confirmed by América Móvil in a stock market filing, marks a halt to a potential consolidation play in one of the region's most competitive markets.
The two telecom giants had signed the preliminary agreement in July 2025 to pursue a combined acquisition of the asset. However, both companies have indicated they may now explore submitting separate offers for the Chilean unit, leaving the door open for continued interest in the strategic asset. This development occurs as Spanish multinational Telefónica executes a sweeping strategic pivot, divesting its Latin American holdings to refocus its operations and investments on its core European markets.
The potential sale of Telefónica Chile is part of a broader, multi-billion dollar exit from the region. Over the past year, the company has sold its operations in Argentina for $1.2 billion, in Colombia for $400 million, and in Ecuador for $380 million. It also offloaded its Peruvian unit for a nominal sum, a stark contrast to the $2 billion it spent to acquire that business in 1994. According to a May 2025 report by Spanish publication El Confidencial, Telefónica has hired investment bank Citi to advise on the sale of the Chilean business. Brazil remains the only Latin American market where Telefónica intends to maintain a presence.
The collapse of the joint bid introduces fresh uncertainty into the sale process but underscores the enduring attractiveness of Chile's telecom market. For América Móvil, controlled by billionaire Carlos Slim, a successful separate bid would significantly bolster its footprint in the Southern Cone. For Entel, acquiring its rival would cement its domestic market leadership. The outcome will have profound implications for market competition, pricing, and network investment in Chile, shaping the landscape for years to come.
Source: datacenterdynamics
América Móvil and Entel Abandon Joint Bid for Telefónica Chile
