Telefónica wins lawsuit against Millicom and will collect approximately 77 million euros

The lawsuit Telefónica was pursuing against Millicom in a New York court over the failed sale of its assets in Costa Rica in 2019 has been successfully closed for the Spanish company after reaching an agreement under which it will be compensated for damages, according to La Vanguardia .

The final amount of the compensation has not been disclosed, but sources familiar with the case say it is close to $90 million (€77 million). Telefónica has declined to comment on this information.

In April 2020, Telefónica announced the lawsuit for breach of contract.

The conflict began in 2019. Telefónica had reached an agreement with Millicon, a telecommunications company that operates brands like Tigo in Central America and the Caribbean, where it has several telecommunications subsidiaries. The agreement contemplated the acquisition of three of the five telecommunications companies that the Spanish company had put up for sale in Central America. These were located in Panama, Nicaragua, and Costa Rica.

The sale of the Panama and Nicaragua divisions went ahead as agreed, but the Costa Rica transaction, valued at $600 million (€513 million) at the time, was delayed due to regulatory issues. Despite ultimately obtaining all the necessary authorizations, Millicom ultimately declined to close the deal.

In April 2020, Telefónica announced its lawsuit against Millicom for breach of contract, and in July 2021, the Spanish operator definitively sold its Costa Rican business to Liberty.

In February 2024, the New York Supreme Court issued a ruling recognizing Telefónica's right to damages, arguing that the transaction between the two companies should have been carried out when Millicom improperly rejected it in 2020.

Finally, after several appeals, on May 22, 2025, the Court of Appeal dismissed Millicom's appeal and partially upheld Telefónica's, confirming the Supreme Court's ruling in favor of the Spanish company. This enabled the two companies to reach an agreement to end the dispute.

Following Marc Murtra's arrival as president of the Spanish telecommunications company, the sale of its Latin American businesses has accelerated, and in the last year alone, the sale of its businesses in Argentina, Peru, and Colombia was completed. The latter was sold to Millicon Spain, a subsidiary of Millicom.