CNA Authorizes the Sale of Movistar Mexico to OXIO for $450 Million

Regulatory approval and scope of the transaction

Mexico’s National Antimonopoly Commission (CNA) has authorized the sale of the companies comprising Telefónica’s business in the country to Melisa Acquisition, LLC. This entity is an investment vehicle led by U.S. technology platform OXIO Inc. and Newfoundland Capital Management. The transaction, valued at $450 million (approximately €400 million), covers the acquisition of 100% of the shares of Pegaso PCS and Celular de Telefonía, the subsidiaries that control Movistar’s operations in Mexico.

The CNA’s full commission adopted the decision with four votes in favor, concluding that the concentration has “little likelihood of affecting the process of free competition and economic competition.” This approval removes one of the main uncertainties surrounding the agreement, which was originally announced in April 2026 and was subject to approval by authorities such as the CNA and the Telecommunications Regulatory Commission (CRT).

Closing deadlines and outstanding conditions

Although the authorization is a decisive step, the sale has not closed. The CNA gives the parties six months from notification of the resolution to complete the transaction. This period may be extended once, for a further six months, if there are justified reasons. Therefore, closing could take place in the coming months or, if the extension is used, be delayed until the second half of 2027.

To finalize the process, Telefónica and Melisa must notify the authority that the transaction has been completed and provide documentation proving compliance with the established conditions. The change of control will not be formalized until these corporate procedures have been completed.

OXIO’s strategy and the future of the Movistar brand

For the buyer, this acquisition represents a significant leap in scale. OXIO, founded in 2018 and headquartered in New York, currently operates as a technology provider offering telecommunications services through cloud infrastructure. Its CEO, Nicolas Girard, has said that the strategy is to transform Movistar’s operations to reduce costs and modernize its infrastructure.

Key plans include:

• Keeping the brand: OXIO has confirmed that Movistar will continue operating under its current name and retain its management team, ensuring an uninterrupted transition for customers.
• Migration to the cloud: The operations are expected to migrate progressively to a cloud-native platform, without users needing to change their SIM cards.
• Shared infrastructure: OXIO intends to maintain its current wholesale agreement with AT&T (through 2030) and combine it with infrastructure from other providers, including an agreement with Amazon Web Services to store information in data centers in Querétaro.

Financial context and Telefónica’s exit from Latin America

This sale is part of Telefónica’s strategy to reduce its exposure in Latin America and concentrate its resources in markets such as Spain, the United Kingdom, Germany, and Brazil. With this transaction, the Spanish group is definitively leaving the Mexican market, where it had been present for more than two decades since entering in 2001.

Although the Mexican subsidiary improved its financial performance in 2025, moving from a loss to a €14 million pre-tax profit, the company had significantly reduced its own infrastructure in previous years, returning cellular spectrum and relying on AT&T’s network for mobile access. The transaction also includes a workforce of more than 1,500 employees and assets such as the core network, frequencies for radio links, and a stake in GTAC’s fiber-optic infrastructure.