Chile’s rise in the Latin American M&A rankings reflects the strength and attractiveness of its market.
A recent report by TTR Data and Datasite, published in December 2024, highlights a significant change in the mergers and acquisitions (M&A) landscape in Latin America: Chile has overtaken Mexico, positioning itself as the country with the second most M&A deals in the region, behind only Brazil. This milestone reaffirms Chile’s importance in the Latin American financial market and evidences the consolidation of its attractiveness to global investors.
Up to November 2024, Chile registered 310 M&A transactions, which represents a 21% decrease compared to the same period of the previous year. However, the value of these transactions increased by 26%, reaching US$9,026 million. Although the number of transactions has decreased, the operations carried out are of greater size and strategic relevance, with a significant impact on key sectors of the economy.
Chile’s rise in the regional ranking can be attributed to several factors. The country’s economic and political stability, together with a clear and predictable regulatory framework, make it an attractive destination for local and foreign investors. In addition, key sectors such as energy, mining and technology have shown great dynamism, driving large-scale operations. Confidence in Chilean institutions and its legal security has also been key in this process.
In the energy sector, Chile is witnessing important movements, especially in renewable energies. International companies have shown interest in solar and wind projects, taking advantage of the country’s natural potential and favorable government policies. This interest translates into acquisitions and mergers that seek to consolidate positions in the Chilean energy market.
From a legal perspective, the increase in the value of transactions in Chile implies both challenges and opportunities. Larger transactions usually require more complex legal structures, exhaustive due diligences and detailed strategic planning. In addition, the participation of foreign investors introduces the need to comply with international regulations and consider comparative law issues. Legal counsel plays a key role in ensuring the success of these transactions.
For legal professionals in Chile, this scenario offers the opportunity to specialize in areas related to M&A, corporate law and sector-specific regulations. Advice in these transactions is crucial to ensure regulatory compliance, the protection of the interests of the parties and the mitigation of associated risks. Adaptability and knowledge of global trends will allow Chilean lawyers to position themselves as key players in M&A advisory.
In conclusion, Chile’s rise in the Latin American M&A ranking reflects the strength and attractiveness of its market. Although the number of transactions has decreased, the increase in transaction value indicates a trend towards more significant and strategic deals. This context presents both challenges and opportunities for the Chilean legal sector, which will have to adapt and specialize to meet the demands of a constantly evolving market.
Written by:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Raimundo Busquet | Associate Corporate and Business Group | rbusquet@az.cl
Source: Industria Legal Magazine, Issue 21 N°2. [See here]
