How will the strategic agreement between Millicom (Tigo) and EPM affect Millicom's share price in the short term?

The announcement removes a major source of uncertainty around the ColTel transaction, so the short‑term reaction should be bullish. The agreement with EPM signals that the merger timeline is now clearer and that the parties have aligned on key governance and financing issues, which most investors interpret as a catalyst that unlocks the expected synergies (expanded footprint, cost efficiencies and higher cash‑flow generation). In a market that already priced in a “wait‑and‑see” premium, the news is likely to trigger a modest price lift of 3‑5 % on the day of release, with the upside extending to the next few sessions as analysts upgrade earnings models and fund managers rotate into the stock.

Technically, Millicom (MLC) has been trading in a narrow range just below its 50‑day moving average. The breakout above the recent resistance around 8.2 USD (the pre‑announcement high) would confirm the bullish bias; a close above that level with higher volume would likely attract momentum buying and push the next target toward the 20‑day EMA near 8.6 USD. Conversely, any failure to sustain above 8.2 USD, especially on low volume, could see the price retest the 200‑day SMA (~7.8 USD) as traders take profits. Traders should watch for the regulator’s comment horizon (typically 48‑72 hours) as a secondary trigger – a clean approval could add another 2‑3 % to the rally, while a delay or conditional approval could cap gains and introduce short‑term volatility. Positioning a modest long‑biased entry near the breakout level with a tight stop just below 8.0 USD would be consistent with the short‑term upside potential while limiting downside risk.