Millicom Secures $440M Deal to Acquire Telefonica Uruguay

Millicom International Cellular S.A. has agreed to acquire Telefónica Móviles del Uruguay S.A. for $440 million to strengthen its presence in South America and consolidate its leadership in the region. The acquisition is expected to be earnings before financing costs and cash taxes (EFCF) accretive starting in 2026, driven by operational efficiencies, synergies, and integration with Millicom’s existing operations in Paraguay and Bolivia. This deal diversifies Millicom’s cash flow sources within Uruguay's favorable macroeconomic environment, supported by its investment-grade credit rating and stable regulatory framework. The acquisition will add immediate scale benefits by including a well-established, profitable mobile operator with nationwide coverage, enhancing Millicom’s competitive position and supporting its goal of accelerating digital inclusion in Latin America. Although the transaction will temporarily increase Millicom’s leverage by approximately 0.1x, the company anticipates long-term value creation across its Latin American platform. Millicom’s CEO, Marcelo Benitez, described the acquisition as a key milestone in the company’s growth strategy and commitment to Uruguay’s digital development.