Millicom completed a deal to acquire Telefonica’s operations in Nicaragua, the first to close under an agreement struck in February to buy three Central American units from the operator for $1.7 billion.

The acquisition of Movistar Nicaragua, the largest operator in the country, will see the unit added to Millicom’s existing Tigo cable operation to boost its fixed-mobile convergence strategy.

Deals for Telefonica’s operations in Panama and Costa Rica are still undergoing regulatory review.

The tie-up in Nicaragua adds approximately 4 million mobile customers to Tigo and a 4G network accessible by 51 per cent of the country’s population.

Millicom said the purchase helps consolidate its leadership position in Central America, while diversifying and balancing the geographic footprint of the company “in its mission to build digital highways and connect more users and communities throughout the region”.

For Telefonica, the sale in Central America followed rumours it was open to selling its entire operation in the region. This year, it has also agreed to sell Movistar operations in Guatemala and El Salvador to America Movil.

When striking the deal, Millicom said it expected to receive regulatory approval in all three markets during H2.