América Móvil had initially explored a joint bid with Entel for Telefónica’s Chilean business but ultimately decided not to proceed
In sum – what to know:
Chile remains strategic despite challenges – CEO Daniel Hajj described the market as “difficult,” but said the company continues investing to gain revenue, market share and operational synergies.
Telefónica sale seen as neutral competitively – Hajj said Millicom’s acquisition does not materially change the competitive landscape, effectively replacing one rival with another.
Consolidation still a long-term goal – América Móvil hopes for future consolidation in both mobile and fixed segments in Chile while preparing for broader M&A opportunities across Latin America.
Mexican telecom giant América Móvil said it will continue investing to strengthen its position in Chile after deciding not to pursue Telefónica’s local operations, with executives noting that the change in ownership is unlikely to alter the competitive landscape in the near term.
During the company’s Q4 earnings call, the company’s CEO Daniel Hajj said América Móvil had initially explored a joint bid with Entel for Telefónica’s Chilean business but ultimately decided not to proceed. The company cited regulatory complexity, the need to split assets, and the target’s leverage as key factors behind the decision.
“It was going to be a little bit complex because regulation, the split of the company, high leverage of the company… it was not an easy deal, and that’s why we decided to quit and to stay where we are,” Hajj said.
Telefónica’s Chilean assets were recently acquired by Millicom, a move that introduces a new operator into the market. However, Hajj said the change does not significantly alter América Móvil’s competitive outlook. “For us, it doesn’t change a lot… at the end of the day, Millicom is a new entrant. So it doesn’t change anything having Telefónica and to change to Millicom,” he said.
Despite describing Chile as a “difficult market,” Hajj said América Móvil is continuing to invest to improve its position. The company is focusing on revenue growth, market-share gains and operational synergies in the country, he said.
“We are doing okay. We’re gaining revenues. We’re gaining market share. We are doing all the investments that we need, all the synergies that we need,” Hajj added.
Looking ahead, Hajj indicated that consolidation would be positive for both the mobile and fixed segments in Chile, although the market is likely to remain competitive in the near term. “I hope that in the future, we can consolidate the market in Chile, not only in the wireless, also in the fixed,” he said.
More broadly, the company expects a wave of consolidation across Latin America and is positioning itself to participate in selective deals, particularly involving smaller operators or fiber assets.
America Movil is preliminarily targeting an overall capital expenditure of 14-15% of revenues for 2026 and the coming years, America Movil’s CFO Carlos Garcia said.
