Telefonica sells tower division to American Tower for EUR7.7bn

13 Jan 2021

Telefonica has announced that Telxius Telecom, the company it co-owns with KKR and Pontegadea, has signed a EUR7.7 billion (USD9.4 billion) agreement with American Tower Corporation (ATC) for the sale of its tower divisions in Europe (Spain and Germany) and Latin America (Brazil, Peru, Chile and Argentina). The agreement encompasses approximately 30,722 tower sites and comprises two separate and independent transactions: one involving Telefonica’s European business and one involving its Latin American business. The respective closings will occur once the corresponding regulatory authorisations have been obtained. Telefonica notes that its subsidiaries will maintain the current lease agreements on the towers. Further, future renewal conditions do not include any additional ‘all or nothing’ clauses.

Jose Maria Alvarez-Pallete, President of Telefonica, commented: ‘This is a deal that makes strategic sense within our roadmap. American Towers was our second supplier after Telxius. After this great operation we will continue to focus on our most ambitious objectives: the integration of O2 with Virgin in the United Kingdom, the purchase of Oi mobile in Brazil and the reduction of debt.’

Argentina, Brazil, Chile, Germany, Peru, Spain, Telefonica, Telxius