América Móvil and Entel have terminated a non-binding agreement to pursue a joint bid to acquire Telefónica's Chilean unit.

The decision was confirmed by América Móvil via a stock market statement.

América Móvil and Entel signed a non-binding agreement in July to snap up Telefónica's Chilean business.

Both telcos have confirmed they may explore separate plans to submit an offer for the unit.

Telefónica has sold off a large chunk of its Latin American assets in the last year, as the carrier looks to focus on Europe instead. Brazil is the only Latin American market the telco isn't exiting.

Last month, Telefónica sold its Ecuadorian subsidiary to Millicom for $380m.

Earlier this year, the carrier sold its Colombian unit for $400m to Millicom.

Telefónica sold its Peruvian unit for less than $1m to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2 billion the company spent to acquire the company back in 1994. In April, Spanish publication El Confidencial reported that Telefónica has hired Citi as an adviser to sell its Chilean business unit.

In February, Telefónica struck a deal to sell its Argentinian unit to Telecom Argentina for $1.2bn.