Millicom Enters Fray for Telefónica Chile, Intensifying Bidding War

Millicom Enters Fray for Telefónica Chile, Intensifying Bidding War January 9, 2026 The contest for Telefónica's Chilean subsidiary has intensified with the entry of a new major bidder, a move that could significantly reshape the competitive dynamics of one of Latin America's most consolidated mobile markets. The potential acquisition is a key part of Telefónica's ongoing strategic retreat from the region to streamline operations and refocus capital. Millicom International Cellular, operating under the Tigo brand in Latin America, has expressed preliminary interest in acquiring Telefónica's operations in Chile, according to a Bloomberg report. The Luxembourg-based telecom group is now evaluating a formal bid, joining existing interested parties América Móvil and Chile's incumbent operator, Entel. This development follows the recent collapse of a planned joint bid between América Móvil and Entel, setting the stage for a potentially fragmented and competitive three-way auction. Millicom's interest is part of a broader pattern of consolidation between the two groups. In late 2025, Millicom finalized the purchase of Telefónica's units in Uruguay and Ecuador for a combined $820 million and has a pending $400 million deal for its Colombian assets awaiting regulatory approval. A successful bid for the Chilean unit, which serves a subscriber base of approximately 5.6 million connections, would mark Millicom's entry into a new national market and further its expansion at the expense of the Spanish giant's regional footprint. The Chilean mobile market is notably competitive, with four major players closely grouped. GSMA Intelligence data for Q4 2025 ranks Entel as the leader with 10.3 million connections, followed by América Móvil, Telefónica, and Novator, each holding between 5 and 5.6 million subscribers. The acquisition of Telefónica Chile by any of the suitors would instantly alter this balance, potentially creating a new market leader or significantly strengthening the position of an existing one. In an October 2025 filing, Telefónica Chile confirmed its parent company had initiated a "strategic evaluation process" for the business, though no final agreements have been reached. Industry analysts suggest that beyond reshaping market share, a transaction of this scale would influence future network investment, particularly in 5G rollout, and could trigger further regulatory scrutiny. The outcome will serve as a critical indicator of Telefónica's divestment strategy pace and the appetite for major telecom assets in the Latin American region. Source: datacenterdynamics