SUTEL, Costa Rica’s telecommunications regulator, issued its final resolution on November 13 2025, rejecting the proposed merger between Liberty Latin America and Millicom’s Costa Rican operations. The decision ends the planned combination of the two operators’ networks and customer bases in the country.
The regulator concluded that the merger would create a dominant entity in key service segments, citing Liberty’s 40.1 % share of the mobile market and 25.4 % share of fixed‑internet subscriptions, and Millicom’s Tigo brand’s 15.4 % share of fixed‑broadband. SUTEL found that the remedies proposed by the companies—such as divestitures of overlapping spectrum and infrastructure—were insufficient to mitigate the anti‑competitive effects that would arise from the combined entity’s market concentration.
The review began with an initial denial on September 11 2025. Both companies filed an appeal on October 22 2025, arguing that the remedies would preserve competition. SUTEL’s final decision on November 13 2025 overturned the earlier ruling and upheld the denial, citing the inadequacy of the proposed remedies and the potential for consumer harm.
Liberty Latin America’s Q2 2025 earnings missed analyst expectations, reporting earnings per share of $0.0123 versus an estimate of $0.1246 and revenue of $1.09 billion versus $1.12 billion. The merger rejection adds another obstacle to LILA’s growth strategy in Central America, potentially delaying the realization of cost synergies and market‑share gains that were expected to support future revenue growth.
Management comments reflected surprise and disagreement with the outcome. Liberty CEO Balan Nair said the decision was “surprising” and that the companies had worked closely with the regulator to design remedies, while Millicom CEO Marcelo Benítez expressed confidence that the transaction would deliver benefits and called the decision unexpected.
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