Key Points
- Telefonica is in exclusive talks to sell its business in Mexico to Beyond ONE, the owner of Virgin Mobile Mexico.
- The sale is part of a new strategy to exit less profitable Latin American markets.
- The Mexican business is estimated to be worth around 520 million euros ($609 million).
- Telefonica is now focusing on its four core markets: Spain, Brazil, Britain, and Germany.
Spanish telecom giant Telefonica is in exclusive talks to sell its Mexican business to Beyond ONE, the company that owns Virgin Mobile Mexico. The move is part of a broader strategy by Telefonica’s new CEO to reduce the company’s exposure in Latin America, where profits have been lower.
Sources with knowledge of the talks said a deal is not yet certain. The Mexican business is valued at around 520 million euros ($609 million), according to one analyst. However, the negotiations could face a delay due to a new antitrust commission proposed by the Mexican government, which would create regulatory uncertainty for any telecom deal.
The potential sale is a key part of the new strategy from CEO Marc Murtra, who plans to focus on the company’s four main markets: Brazil, Britain, Germany, and Spain. This move is consistent with their recent actions, as Telefonica has already agreed to sell its businesses in Argentina and Uruguay and is also looking to sell its units in Chile and Ecuador.
Beyond ONE, a Dubai-based company, acquired Virgin Mobile’s Latin American operations in 2023, thereby expanding its presence to Mexico and Colombia. Acquiring Telefonica’s larger network would significantly expand its footprint in the country.
