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Millicom Could Break Into Chile’s Top Telecom Tier With The Telefonica Acquisition—What’s The Endgame?

Millicom International Cellular SA is once again at the center of Latin America’s telecom M&A activity following reports of its potential interest in acquiring Telefonica SA’s Chilean unit. This comes on the heels of a transformative period for Millicom, which recently completed acquisitions in Uruguay and Ecuador, posted a record adjusted EBITDA margin of 48.9%, and continues to scale its regional footprint with disciplined capital allocation. The Luxembourg-based operator, active under the “Tigo” brand, has been rapidly consolidating assets formerly held by Telefonica across Latin America as the Spanish telecom giant retrenches to focus on its Brazilian core. While no final decisions have been made, and talks remain preliminary, a successful deal would maintain Chile’s current competitive landscape while enabling Millicom to enter one of the region’s more stable economies with substantial urban mobile demand. As Telefonica’s Movistar brand holds over 22% of Chile’s mobile market, the potential synergy from this acquisition warrants closer examination. Here’s a detailed look at the key drivers that could make this acquisition a strategic fit for Millicom.