Millicom International Cellular S.A. (Tigo) closed a tender offer for Telefónica’s 67.5% controlling stake in Colombia Telecomunicaciones S.A. E.S.P. (Coltel) on February 6 2026, finalizing a transaction valued at USD 214.4 million. The deal brings Tigo and Movistar under a single ownership structure, creating a combined entity that is poised to rival Claro as the dominant operator in Colombia.
The acquisition is part of a broader consolidation strategy that also saw Millicom acquire full control of UNE EPM Telecomunicaciones S.A. (Tigo Colombia) in late January. By merging Tigo and Movistar, Millicom gains scale that is essential for financing the capital‑intensive rollout of 5G and fiber networks. Management argues that the enlarged footprint will accelerate service expansion, improve coverage, and enhance digital inclusion for millions of Colombians.
Initial reports in March 2025 and July‑August 2024 had pegged the deal at roughly USD 400 million. The final price of USD 214.4 million reflects customary adjustments for net‑debt evolution, working‑capital changes, and foreign‑exchange movements, indicating a more conservative valuation than early estimates suggested.
Millicom’s recent financials show that the acquisition represents a substantial outlay relative to its quarterly earnings, underscoring the company’s commitment to long‑term growth in core Latin American markets. The transaction is expected to strengthen the company’s balance sheet by consolidating debt and improving cash‑flow generation from a larger, more integrated network.
The combined Tigo‑Movistar entity will hold a market share comparable to Claro’s 41.5% share, potentially reshaping Colombia’s telecom landscape into a duopoly. Analysts expect the merger to increase competitive pressure on pricing and spur further investment in network infrastructure, benefiting consumers and the broader digital economy.
CEO Marcelo Benitez said the deal “is a decisive step in strengthening our long‑term commitment to Colombia, enabling faster deployment of fiber and 5G, expanding coverage, and improving service quality for millions of Colombians.” He added that the move will foster competition, accelerate digital inclusion, and position Millicom as a leading integrated operator in the region.
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