Millicom International Cellular has struck an agreement with Telefónica to acquire the company's Colombian unit for $400 million. Latin American telecoms group Millicom has been in talks with the telco for several months over a deal.

Telecom giant Telefonica has agreed to sell its stake in its Colombian unit to Millicom, a provider of fixed and mobile telecommunications services in Latin America, for US $400 million.

Millicom inked a binding agreement with Telefonica for the purchase of a majority stake in the Spanish operator group's Colombia business.