Spanish telecommunications giant Telefónica has finalized the sale of its Chilean operations to a joint venture between French holding company NJJ Holding and Luxembourg-based Millicom, in a deal valued at up to $1.365 billion, the companies confirmed Tuesday.
The transaction marks the end of Telefónica’s 35-year presence in Chile and is part of a broader strategic shift by the Spanish firm to focus on its European markets, according to statements released by both companies. The sale includes an initial cash payment of $50 million to Telefónica, with the potential for an additional $150 million contingent on the achievement of specific performance targets. Telefónica will also contribute additional financial support to ensure a smooth transition for the Chilean operation.
NJJ Holding will hold a 51% controlling stake in the newly acquired Chilean unit, while Millicom will own the remaining 49%, according to a statement released by Millicom. Both companies are controlled by French billionaire Xavier Niel.
Alfonso Gómez, CEO of Telefónica Hispam, emphasized the strength of the operation being transferred, stating, “Telefónica leaves in Chile a robust operation, a modern infrastructure and a platform prepared for the new shareholder to continue driving the country’s digital development on solid foundations.”
The deal follows Telefónica’s recent exit from Colombia, where it sold its operations to Millicom for $215 million. The company has also signed agreements to exit Peru and Argentina in 2025, as it continues to streamline its portfolio and prioritize its European business.
Despite the change in ownership, Telefónica has indicated that the Movistar brand will continue to operate normally in Chile, with existing contracts and pricing structures remaining stable in the short to medium term. The transaction is an acquisition, not a merger and therefore is not expected to cause immediate disruption to services.
Millicom CEO Marcelo Benitez described the transaction as a “disciplined and pragmatic approach to long-term value creation in Latin America,” adding that the company will work with NJJ to “reposition a challenged asset in one of the region’s largest and most strategic markets at an attractive valuation.” The Chilean business had net debt of €479 million in 2025, according to Millicom.
Telefónica Chile’s net debt stood at €479 million in 2025, according to Millicom. The deal was signed and closed on February 10, 2026.