Latin American Viewpoints - November 2021

Latam - 21 / 10 / 2021

Mergers and acquisitions in Chile, Colombia, Mexico and Peru: key points to consider

In current M&A practice, when talking about transactions of a certain size, it is important to take economic competition factors into account, and a preliminary and important element that especially needs to be considered is what the merger control rules are. The timing for making a filing or a notification to obtain approval from the competition authority, and the timing for receiving a reply from that authority are, together with other regulatory clearance which may vary depending on the type of transaction or industry concerned, a crucial element for negotiating the conditions that will need to be fulfilled before closing a merger.

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Social bonds gain ground in Latin America

Latin America and the Caribbean was the region with the fastest growing thematic bond market globally. This context prompts interest in the impact of sustainable investment and the potential of social bond issuances in Latin America, as well as how the legislation has evolved in each jurisdiction. In this article, we deal with the current situation in Chile, Colombia, Mexico and Peru.

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The COVID-19 vaccine and its effects on employment relationships: the landscape in Latin America

The COVID-19 health crisis has brought various challenges in every country, and vaccination is one of them. In this article we look at the state of affairs in Chile, Colombia, Mexico and Peru in relation to vaccination and its effects in the workplace.

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NPL and REO transactions continue to take off in Latam, Spain and Portugal

NPL transactions continued to take off in the third quarter of 2021. A growing interest in NPL securitizations has been perceived, especially in Spain. In Europe, meanwhile, talks continue on two key topics: the draft directive on credit purchasers and credit servicers – which has made great progress –, and talks on the European Banking Association’s templates aimed at simplifying NPL portfolio transactions. The gradual disappearance of forbearance programs and other support measures in Latin America, Spain and Portugal are fueling very reasonable estimates on the forthcoming launch of new transactions.

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The e-commerce boom in Latam: regulatory developments in the wake of COVID-19

The COVID-19 public health crisis has had a huge impact on the e-commerce industry worldwide. Latin America, which lagged behind other regions, has been one of the most favored as regards e-commerce growth. This is due in part to the restrictive measures adopted by governments during the health crisis, which obliged both suppliers and consumers to buy and sell more goods and services through digital channels. We analyze the legal developments in this area in Colombia, Chile, Mexico and Peru.

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Mexico: key issues to bear in mind following the entry into force of the outsourcing reform

The labor reform prohibiting the general outsourcing of personnel and establishing that specialized personnel services may only be outsourced where they do not coincide with the corporate purpose or predominant activity of the contractor, as we indicated here, entered into force in Mexico on September 1, 2021. After various negotiations between the business sector, the federal government and political parties, the ‘vacatio legis’ of the reform was extended, meaning that it entered into full force on September 1. We analyze its early effects and provide a reminder of the new obligations for all companies that provide specialized services and are registered on the REPSE, as well as the penalties for breach.

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Colombia approves its tax reform through the Social Investment Law

After the central government withdrew its initial tax reform bill, the Social Investment Law was approved without incident by Congress with a clearly limited scope compared to the ambitions of the initial bill, focusing on taxation of legal entities.

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Proposed energy counter-reform in Mexico

On September 30, 2021, the Executive Branch of the Mexican Federal Government submitted a bill to amend articles 25, 27 and 28 of the Political Constitution of the United Mexican States (the Reform Bill). If approved, this measure would, among others, repeal the constitutional reform of the electricity sector passed on December 20, 2013 (the 2013 Energy Reform), restore the state-dominant position in Mexico’s electricity industry through the Federal Electricity Commission (CFE) and limit and control private participation in power generation, removing at a stroke the regulatory agencies that currently govern the national electricity system and the wholesale energy market.

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