Iberdrola and Telefónica accelerate asset sales to refocus on core markets
- Telefónica receives authorization to sell Telefónica Uruguay to Millicom for €370 million; sales of Argentina and Peru already closed.
- telefónica is awaiting approvals for sales in Colombia (~€370m) and Ecuador (~€330m) ahead of its new strategic plan on november 4,2025.
- Iberdrola agrees to sell its Hungary business to a consortium of Premier Energy and iG TECH CC for €171 million.
- Both companies are streamlining portfolios to focus on core markets – Telefónica on priority telecom markets, Iberdrola on networks in the U.S.and U.K.
- Investors expect more active M&A or consolidation in both sectors, though management stresses controlled leverage.
Introduction
Spanish blue-chips Telefónica and Iberdrola have stepped up disposals of non-core assets this month, accelerating restructuring moves as both groups prepare to unveil new strategic plans. The transactions underline a clear pivot: Telefónica under new president Marc Murtra is deepening its retreat from peripheral Latin american markets, while Iberdrola continues to concentrate capital on regulated networks in the United States and the United kingdom.
Telefónica narrows focus in Latin America
Telefónica has recently secured authorization to sell its operations in Uruguay to Millicom for €370 million – the latest in a series of disposals designed to sharpen the company’s footprint in strategic markets. The move follows completed exits from Argentina and Peru and comes as Telefónica awaits regulatory approvals for sales in Colombia (about €370 million) and ecuador (approximately €330 million).
What management says and what’s next
- Marc Murtra, Telefónica’s president, promised a strategic review after taking the helm; the company will present a new strategic plan on November 4, 2025.
- Murtra has called for friendlier regulation from Brussels and supported industry consolidation – signalling potential future acquisitions – while stressing a commitment to keeping debt under control.
- The disposal program is intended to free up capital and management bandwidth to invest in Telefónica’s prioritized markets and technologies.
iberdrola offloads Hungary business to focus on networks
Iberdrola has reached an agreement to sell its Hungarian business to a consortium made up of Premier Energy and iG TECH CC for €171 million. The sale is consistent with Iberdrola’s strategy to concentrate investment on regulated and high-growth network assets, notably in the U.S. and U.K.
Recent moves and strategic direction
- Iberdrola has recently sold businesses in Mexico and divested its smart meter operations in the U.K.
- The group has also completed several corporate moves including the delisting tender offer for Avangrid, the repurchase of Neoenergia, partnerships and a fast capital increase.
- Iberdrola will publish a three-year strategic roadmap on September 24, 2025, after its 2026 outlook were surpassed.
why these sales matter: market and investor implications
The divestments by Telefónica and Iberdrola reflect broader trends among European industrial and utility groups: sharpened portfolios, focus on regulated and priority markets, and a stronger emphasis on capital allocation efficiency.
key implications
- Capital recycling: Sales generate liquidity for investments in core growth areas (telecommunications infrastructure, regulated energy networks).
- Regulatory focus: Executives are pressing for clearer, friendlier rules to enable consolidation and investment – particularly in telecoms.
- potential for M&A: Investors expect more aggressive buy-side activity once portfolios are streamlined,though balance-sheet discipline remains a stated priority.
Quick reference: Recent disposals (selected)
| Company | Asset / Country | Buyer | consideration |
|---|---|---|---|
| Telefónica | Uruguay | Millicom | €370 million |
| Telefónica | Colombia (pending) | – | ~€370 million (expected) |
| Telefónica | Ecuador (pending) | – | ~€330 million (expected) |
| Iberdrola | Hungary | Premier Energy + iG TECH CC | €171 million |
What to watch next
- Telefónica’s strategic plan launch on November 4, 2025 – investors will look for details on future M&A appetite, capex allocation and debt targets.
- Iberdrola’s three-year roadmap on September 24, 2025 – expect priorities on networks, regulated assets and capital returns.
- Regulatory developments in the EU and local markets that could enable or constrain consolidation in telecoms and energy sectors.
Bottom line
Telefónica and Iberdrola’s latest disposals show a decisive move toward simplification and strategic concentration. By selling non-core assets and preparing new strategic plans,both firms aim to strengthen positions in high-priority markets while preserving financial discipline. The coming weeks – when both groups publish updated roadmaps – will be key to understanding whether these divestments are the prelude to fresh acquisitions, faster growth in core countries, or a sustained focus on balance-sheet strength.
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