Telefonica reportedly entered into exclusive discussions with Dubai-based Beyond ONE over the potential sale of its business in Mexico, as it continues a push to reduce its presence in Latin America.

Three sources close to Reuters claim Telefonica is accelerating a plan to sell its Mexican operation, after rumours first emerged in February that is looking to exit the market, along with other businesses in the region.

It has since agreed a sale of its unit in Argentina to Telecom Argentina, a deal with Millicom for its Colombia operation and disposals in Uruguay and Peru.

If Reuters sources are proved correct, Mexico could well be next on the chopping block with Beyond ONE looking to bolster its presence in the country after buying MVNO Virgin Mobile Latin America in 2023.

A research note published in June by European financial services company Kepler Cheuvreux indicated Telefonica’s Mexico business could be worth around €520 million.

Under new CEO Marc Murtra, Telefonica has stated it plans to focus on four core markets of Brazil, the UK, Spain and Germany. It plans to unveil a major cost-cutting programme later this year.

However, Reuters added a sale in Mexico could be held up by the creation of a new antitrust commission, which has been mooted and would have oversight over telecoms companies.