Despite broader optimism from corporate executives and Wall Street investors toward Milei’s business-friendly efforts to reform the South American economy, Telefonica’s exit follows a broader wave of multinational companies leaving on his watch, including Exxon Mobil Corp., HSBC Holdings Plc and Mercedes-Benz Group AG. Outside a spate of energy and mining deals, long-term investments also haven’t materialized with companies concerned over how the government will unravel the country’s web of currency and capital controls. Argentina was one of the first two countries Telefonica entered when it started its international expansion in Latin America in the early 1990s, together with Chile. Its arrival in Argentina marked one of the most iconic deals of the country’s wave of privatizations at the time, and Telefonica endured repeated economic crises in Argentina. Executive Chairman Marc Murtra, appointed by the Spanish government in January, is accelerating a plan to restructure the company, focusing on part of Latin America. Recently the company sought bankruptcy protection for its Peruvian unit, and according to media reports, it is looking to sell its operations in Mexico and Colombia. Previous Chairman Jose Maria Alvarez Pallete had announced in 2019 a plan to drastically lower exposure to Latin America, but struggled to do so. The Spanish government has owned 10% of Telefonica since last year. (Updates throughout with details of deal and company history.)