Telefónica’s exit from Mexico — part of the Spanish telecom giant’s broader retreat from Hispanic Latin America — could be completed within the next six months, according to executives from buyer Oxio, the technology firm leading the consortium acquiring Movistar Mexico.
In a GSMA event in Mexico City, Oxio CEO Nicolás Girard said the consortium still needs to complete a “high-confidence process” before closing the acquisition of Telefónica’s Mexican unit, but indicated the transaction is advancing toward completion in the coming months
Telefónica agreed in April to sell its Mexican operation, Movistar Mexico, to a consortium formed by Oxio and Brazil-based Newfoundland Capital Management for US$450mn (approximately €390mn).
The transaction includes 100% of Pegaso PCS and Celular de Telefonía, which together serve more than 25 million customers in Mexico.
The acquisition will be executed through Melisa Acquisition LLC, the vehicle created by Oxio and Newfoundland Capital Management for the deal.
For now, the Movistar Mexico brand and management team are expected to remain unchanged.
The sale forms part of Telefónica’s broader strategy to reduce exposure to Spanish-speaking Latin America and focus on its four core markets: Brazil, the UK, Spain and Germany.
Following the Mexico transaction, Venezuela would remain Telefónica’s only operation in Hispanoamérica. The company has also expressed intentions to divest that asset, although progress has been slower.
Meanwhile, the retreat from Latin America has affected Telefónica’s financial results.
The Spanish telecom group reported a net loss of €411mn (US$480mn) in the first quarter of 2026, pressured by accounting losses linked to the transactions in Chile, Colombia and Mexico – the latter still pending completion.
According to Telefónica, discontinued operations generated losses of €798mn (US$934mn) during the quarter, “mainly due to the impact of the sale transactions carried out in Chile, Colombia and Mexico.”
However, CFO Juan Vich said proceeds from the sales in Colombia and Chile helped reduce net financial debt to €25.3bn (US$29.6bn) during the quarter.
“We are moving into a stronger position thanks to more predictable cash flow following the successful execution of the sale of six Hispam countries over the past 12 months, with a total value exceeding €4bn (US$4.7bn),” Vich said during a conference call with analysts.
Founded in 2018, Oxio is a New York-based technology company with offices in Mexico City and Montreal.
The company provides telecom-as-a-service (TaaS) and wholesale telecom solutions, enabling brands and enterprises to launch mobile virtual network operators (MVNOs) or embed connectivity into products through a cloud-native, white-label platform.
Newfoundland Capital Management, headquartered in São Paulo, is a pan-Latin American boutique investment firm focused on sectors such as finance, retail and utilities. Since launching its first fund in 2009, the company says it has allocated more than 4bn reais (US$800mn) across investments in Latin America.
(The original version of this content was written in English)