Telefónica will sell its Ecuadorian unit to Millicom Spain for $380 million.

It's the latest in a long list of deals the carrier has struck in Latin America, as it looks to consolidate its business in key European markets.

Millicom snapped up Telefónica's Uruguayan business last month for $440 million.

Earlier this year, Millicom reached an agreement to acquire Telefónica's Colombian unit for $400m.

The company acquired Telefónica's Panamanian, Costa Rican, and Nicaraguan mobile units in 2019 for a combined $1.6bn.

The transaction to sell Telefónica's Ecuadorian unit is subject to regulatory approval.

"This transaction is part of Telefónica's strategy to optimize its portfolio and progressively reduce its exposure in Latin America, focusing on key markets and generating sustainable value," said the telco.

Telefónica Ecuador operates under the Movistar brand and is the second-largest mobile operator in the country, with around five million customers and around 28 percent market share.

"Europe, Europe, Europe"

Telefónica operates in its home market, Spain, and holds a sizeable chunk of the telecoms market in the UK with Virgin Media O2, and in Germany with O2 Deutschland.

The carrier has pushed to slim down its operations in Latin America, under an initiative pushed by chairman Marc Murtra.

"Our priority will be Europe, Europe, and Europe; we will maintain our leadership position in Brazil as a core market, and we will focus on what we know how to do as an industrial operator," Murtra said in April.

Telefónica sold its Peruvian unit for less than $1 million to Integra TecInternational Inc (Integra Tec), taking a huge hit on the $2bn the company spent to acquire the company back in 1994. In April, Spanish publication El Confidencial reported that Telefónica had 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, while it has also stepped up plans to sell its Mexican unit.