LONDON – Telefónica SA has entered exclusive negotiations to divest its Mexican operations to Dubai-based Beyond ONE, owner of Virgin Mobile Mexico, according to three sources familiar with the matter. The potential deal marks the latest step in the Spanish telecom giant’s strategic retreat from Latin America to focus on core European and Brazilian markets.
Strategic Refocus Under New Leadership
The move aligns with CEO Marc Murtra’s plan to streamline operations, prioritizing Brazil, Britain, Germany, and Spain—markets where profitability exceeds capital costs. Telefónica has already offloaded assets in Argentina (sold for $1.245B in February) and Uruguay ($440M deal with Millicom in May), with Chile and Ecuador also on the block.
Deal Valuation and Regulatory Hurdles
Kepler Chevreux estimates the Mexican unit’s value at €520M ($609M), though sources caution talks may face delays due to Mexico’s proposed antitrust reforms, which could complicate regulatory approvals. Beyond ONE, which acquired Virgin Mobile Latin America in 2023, would expand its regional footprint with the purchase.
Market Uncertainty
Neither Telefónica nor Beyond ONE commented publicly, and sources stress a deal isn’t guaranteed. The transaction’s fate may hinge on Mexico’s evolving telecom regulations, with a new oversight body potentially reshaping the competitive landscape.
Telefónica’s full strategic roadmap under Murtra is expected later this year as the company pivots toward higher-margin markets.