As reported by several specialized websites, including Bloomberg and the Spanish newspaper ‘Cinco Dias’ on its web version, after having acquired Telefónica’s operations in Costa Rica this year – where, as in the rest of Latin America, excluding Brazil, it operates under the ‘Movistar’ brand-, Liberty Latin America is now considering an acquisition of Telefonica’s businesses in Colombia and Ecuador.
According to Bloomberg, which quoted people with knowledge of the matter who asked not to be identified, the telecommunications companies have held talks over a potential deal. Up to now, no executives of both companies have expressed themselves in relation to a possible transaction between them.
On the other hand, at the end of 2019, Jose Maria Alvarez Pallete, Chairman at the Telefonica Group, announced a new action plan that focuses on decoupling the company’s operations in Hispanic America (Latin American countries, not including Brazil), and focusing its business in Brazil and other countries outside the region, such as Spain, the UK and Germany.
In the case of Costa Rica, the agreement between Movistar and Liberty Latin America was cancelled after the frustrated negotiations with Millicom, which ended in a lawsuit made by Telefonica against the company that operates under the ‘Tigo’ brand in Latin America ‘for unjustified non-fulfillment of the terms of the agreement they had ran in 2019’.