**Millicom Eyes Telefonica’s Chilean Unit for Market Expansion**
Millicom International Cellular SA is reportedly considering a bid for Telefonica SA’s Chilean subsidiary, aiming to expand its services in the region. Sources familiar with the situation, who wish to remain anonymous due to the confidential nature of the discussions, indicate that no final decisions have been reached, and it remains uncertain whether Millicom will proceed with an offer for Telefonica Chile. If successful, this acquisition would introduce a new competitor to the Chilean telecommunications market, maintaining the total number of major players at four.
Millicom, which operates under the Tigo brand and has a long-standing presence in Latin America, has previously acquired Telefonica’s assets in other countries as the Spanish company reduces its footprint outside Brazil. In the last year, Millicom has successfully negotiated the purchase of Telefonica’s operations in Colombia, Ecuador, and Uruguay.
Telefonica has been actively seeking bids for its Chilean unit since last year and has previously attracted interest from competitors such as Entel SA and America Movil SAB. However, plans for a joint bid between these two companies have since been abandoned. Entel is currently evaluating its options to remain in the bidding process, while America Movil intends to pursue a solo bid. As of now, Entel has not submitted any new offers.
The failed joint bid was seen as a strong contender and could have led to consolidation in a market where operators have faced financial challenges, including instances of bankruptcy. Investors had generally viewed the reduction of competitors favorably. However, antitrust regulators may prioritize maintaining a competitive landscape, and a bid from Millicom would help stabilize the number of major carriers in the market.
As of September, Movistar, the brand under which Telefonica operates in Chile, held a 22.6% market share, ranking second after Entel, according to the latest regulatory data.
**FAQ**
*What is Millicom’s interest in Telefonica’s Chilean unit?*
Millicom is considering a bid for Telefonica’s Chilean subsidiary to expand its services in the region, potentially introducing a new competitor to the market.
