Baker McKenzie helps EPM win bid for CaribeMar

Baker McKenzie in Colombia has advised Empresas Públicas de Medellín (EPM), a public utility service company, on the bidding process to acquire CaribeMar from Electricaribe, the largest utilities company in Colombia.

Before the bidding process, Electricaribe was split into two new electricity providers: CaribeMar and CaribeSol. CaribeSol was acquired by Consorcio Energía de la Costa.

“The complex situation of Electricaribe, the decision of the National Government to divide Electricaribe’s assets into two companies, as well as the difficulty inherent in an auction process, made it an especially complex process,” Bogotá-based lead partner Andrés Crump (pictured) said.

The deal dates back to 2016, when Electricaribe’s operations were seized by the Colombian government, as Electricaribe’s financial difficulties raised doubt over its ability to provide electricity to its 10 million customers in all the northern region of Colombia.

The EPM initiative will allow the company to reach 1.5 million new users, which would mean an expansion in its services to a total population of 19 million people.

“The transaction makes EPM the largest energy distribution and commercialization company in Colombia, with a market share of around 35 per cent, and it would be one of the most significant that the national government has carried out in recent years,” Crump added.

The deal was awarded to EPM, and Baker Mckenzie in Bogot, acted as EPM’s exclusive legal adviser on the Transaction. In addition to Crump, the firm’s team comprised associates Natalia Ponce de León and Juliana Tobón.