The Latin American Lawyer September 2018 LATAM MAGAZINE SEPT18 | Page 9

News
Colombian lawyers reporting up to 100%
increase in M&A work
Lawyers highlight substantial
activity in finance, insurance,
oil and gas, healthcare and
utilities industries despite
uncertainty about new
government’s economic policy
M&A activity in Colombia has
been relatively strong in the first
half of 2018 with most major law
firms reporting an increase in
transactional work during the
period. Indeed, some firms have
recorded a 100 per cent rise in
M&A activity this year. Claudia
Barrero, Bogotá-based partner at
Philippi Prietocarrizosa, Ferrero
DU & Uría – which, according
to Mergermarket, has been the
second most active law firm in Latin
American M&A this year – says:
“There is clearly significant appetite
for Colombian targets and a
perception of stability regarding our
legal institutions.” Barrero, whose
firm handled 16 deals in Latin
America in the first half of the year
(up from 14 in the same period the
previous year), notes an increase
in M&A activity in the internet
and retail sectors in Colombia.
“These are going to be the most
promising sectors in Colombia in
the coming year,” she says, adding
that there is expectation that
general M&A activity will grow
in the second half of the year now
the new government is in place –
President Iván Duque, who took
over in August 2018, is perceived as
business-friendly.
Sergio Michelsen, a partner at
Brigard & Urrutía in Colombia –
which has handled twice as many
M&A deals in the first half of this
year compared to last year (it has
been instructed on 12 deals with a
total value of $660 million) – says
there has been substantial activity
in the finance and insurance
sectors, as well as in the oil and gas,
healthcare and utilities industries
despite uncertainty about the
economic policies of the incoming
government. “Now that the
presidential election has passed,
and a business-friendly agenda
has been announced by the new
government, we expect deal activity
www.iberianlawyer.com/latin-america
to increase,” he says.
Anti-corruption strategies
While there has been an increase
in M&A activity in Colombia
involving Asian investors, most
international buyers come from
the US and Europe, says Brigard
& Urrutia partner Jaime Robledo.
“Interestingly, we are also seeing
M&A activity involving intra-Latin
American investment,” he adds.
“In our case, we have worked on
acquisitions with Chilean and
Mexican counterparts.”
Due diligence related to corruption,
as well as the development of
anti-corruption strategies will
become increasingly important in
M&A transactions, according to
Felipe Quintero, partner at DLA
Piper Martínez Beltrán in Bogotá.
Meanwhile, Michelsen points out
that law firms are already starting
to develop specialis ed practices
that deal exclusively with these
issues, with clients becoming much
more demanding when it comes to
compliance-related due diligence,
particularly in relation to public
sector and infrastructure-related
deals.
Cross-border deals
There will be more multi-
jurisdictional and cross-border
deals in Colombia as the country
remains an attractive market for
multinational companies in sectors
such as technology, consumer,
financial services and agroindustry,
says Quintero. “Colombian
companies will continue to make
acquisitions abroad, principally in
Central America and other countries
in the Pacific Alliance,” he adds.
The way M&A deals are
conducted will begin to change
as law firms make greater use of
artificial intelligence and machine
learning tools when conducting
due diligence, Quintero adds.
Meanwhile, Barrero says legal
technology will facilitate more
efficiency and precision in M&A
deals. He continues: “In the future,
junior teams might be leaner as
artificial intelligence kicks-in but we
expect that the value that human
experience and judgement add will
remain.”
News in brief
Baker McKenzie appoints new
managing partner for Mexico
Baker McKenzie appointed
competition and anti-trust
specialist Raymundo E. Enríquez
as the firm’s new managing
partner in Mexico. He will replace
Reynaldo Vizcarra, who has
completed a two-year tenure in
the post and will continue as a
compliance partner in the firm.
Carey advises on Scotiabank-
BBVA Chile merger
Carey advised Bank of Nova
Scotia on the merger of the
operations of Scotiabank Chile
and BBVA Chile, creating what
will be the country’s largest
private bank, operating under the
name of Scotiabank Chile. The
deal was valued at around $1.7
billion.
Morgan & Morgan instructed on
Panama Metro project
Morgan & Morgan advised
Hitachi, Mitsubishi Corporation
and Ansaldo on the negotiation
of an agreement signed with
state-owned Metro de Panama
for works on the monorail-type
Line 3 of the Panama Metro.
The consortium was nominated
subcontractor for the $840mn
turn-key contract in August as a
result of a public bidding process
and will design, supply and put
into operation the integrated
operating systems of the Line 3
project.
Marval advises Banco do Brasil on
Banco Patagonia deal
Argentinian law firm Marval,
O’Farrell & Mairal acted as legal
adviser to Banco do Brasil on its
acquisition of an additional 21.42
per cent stake in Banco Patagonia.
The deal was valued at $202.4mn
and increases its stake in the
Argentinian bank from 58.9 to
80.38 per cent. Marval’s parners
advising on the transaction
were Pablo A. Artagaveytia and
Roberto E. Silva Jr.
September 2018 • THE LATIN AMERICAN LAWYER •
7