Spanish telecommunications giant Telefónica has finalized the sale of its Chilean operations to a consortium comprised of NJJ Holding and Millicom Spain for $1.2 billion, marking the end of its 35-year presence in the country. The deal, completed on Tuesday, February 17, 2026, is part of a broader strategy by Telefónica to reduce its investments in Latin American markets, according to a company statement.
The transaction includes an initial payment of $50 million to Telefónica, with the potential for an additional $150 million contingent upon the achievement of specific value-creation milestones. Telefónica will likewise provide further financial support to ensure a stable transition for the Chilean operation, the company confirmed.
NJJ Holding and Millicom are both controlled by French billionaire Xavier Niel, who established a jointly run vehicle to acquire a 49 percent and 51 percent stake in the Chilean business, respectively. The acquisition was signed and closed on February 10, 2026, according to Millicom.
Alfonso Gómez, CEO of Telefónica Hispam, stated that the company is leaving behind “a robust operation, a modern infrastructure and a platform prepared for the new shareholder to continue promoting the country’s digital development on solid foundations.”
Telefónica reported that the Chilean business had net debt of €479 million in 2025. The sale follows similar divestments by Telefónica in Ecuador, Uruguay, Peru, and Argentina in 2025, as the company continues to streamline its Latin American portfolio.
Customers of Movistar, Telefónica’s brand in Chile, are not expected to experience immediate changes to their existing plans or contracts. Contracts, mobile plans, and home services – including fiber optic and television – will maintain their current terms and pricing, at least in the short to medium term. The Movistar brand is expected to continue operating as before, as the deal is structured as an acquisition rather than a merger.
Marcelo Benitez, CEO of Millicom, described the transaction as reflecting a “disciplined and pragmatic approach to long-term value creation in Latin America.” Millicom intends to operate the business and collaborate with NJJ to “reposition a challenged asset in one of the region’s largest and most strategic markets at an attractive valuation.”
Rumors of Millicom’s interest in Telefónica’s Chilean business surfaced at the beginning of the year, with reports indicating that America Movil and Entel were also potential bidders.
