Pro-business credentials of new Chilean president set to trigger more M&A
Lawyers in Chile are anticipating an increase in M&A work following the election of Sebastián Piñera as the country’s president
The election of Piñera – seen as having pro-business credentials – ended a period of uncertainty in which deals slowed down or stopped completely, lawyers say. According to Javier Ybáñez, a partner at Garrigues in Spain, Piñera´s victory is likely to cause an increase in economic activity, as many projects on hold are set to be developed. Meanwhile, Garrigues’ Chile-based partner Luis Felipe Merino says the result of the presidential election means that “most likely, we should see an active M&A market”.
Jaime Carey, managing partner at Carey, says the country’s existing tax and labour regulations post many challenges for businesses, while obtaining environmental approval for deals can be difficult. However, he adds that he expects an increase in work for Chilean lawyers due to the growing optimism among foreign and domestic investors and the likelihood of stalled projects restarting.
It is also anticipated that there will be an increase in mandates related to innovation and research & development policies as well as work concerning changes to tax, labour and environmental regulations, according to Matías Zegers, partner at BAZ|DLA Piper. Meanwhile, José Luis Ambrosy, partner at Claro & Cía, says: “The new government needs to boost overall investment, especially in public-private infrastructure projects.”
There is an increasing need for new regulation to facilitate foreign investment, attract more public-private partnership projects and raise productivity, says EY partner Alicia Domínguez. In addition, Guerrero Olivos partner Roberto Guerrero says there is a need for predictability in the approval process for projects to improve the flow of investment, particularly in mining and energy. That said, the mining and energy sectors are expected to generate an increasing amount of work for lawyers, according to Gonzalo Delaveau, founding partner at Honorato Delaveau.
