Vouga assists Banco Atlas in merger with Banco Familiar
Vouga Abogados has assisted Banco Atlas and its subsidiaries in structuring the initiation of the merger and consolidation process of its operations with Banco Familiar.
This process began with the signing of certain key agreements that established the basis for the transaction, which also involves the subsidiaries Atlas de Seguros, Atlas Casa de Bolsa, and Atlas Administradora de Fondos Patrimoniales de Inversión, on the one hand; and Familiar Seguros, Familiar Casa de Bolsa, and Familiar Administradora de Fondos Patrimoniales de Inversión, on the other hand.
This merger is the largest and most important M&A transaction of 2024 in Paraguay, which will give rise to the new Banco Atlas Familiar, consolidating it as one of the largest banks in the market. The new bank will have total assets in excess of USD 2.7 billion, net worth of USD 320 million, and an active portfolio of USD 1.92 billion. The transaction, which marks a historic and significant milestone for the market as a whole, is subject to regulatory approval.
Our advice covered areas such as banking, capital markets, insurance, corporate, transactional, regulatory, tax, antitrust, among others. Our advice also included the drafting and negotiation of the transaction agreements, as well as the planning of the subsequent steps in this process.
The transaction, of great magnitude and complexity, involves a quadruple merger, at different levels, including the merger of 2 banks, the merger of 2 insurance companies, 2 brokerage firms and 2 pension fund managers. The closing of the transaction will require the fulfillment of certain conditions to closing and the obtaining of approvals from various regulators. Unlike other precedents in the market in which financial entities were absorbed (without the creation of a new entity per se), this transaction marks a milestone since it implies the creation of a new entity.
Jorge Vera acted as in-house counsel for Banco Atlas.
Vouga’s team advising on this first stage of the transaction is led by partners Rodolfo G. Vouga Zuccolillo (pictured left) and Cynthia Fatecha (pictured right), together with senior associates Cecilia Vera, Andrés Vera and Horacio Sánchez.
Fiorio Cardozo & Alvarado Law Firm advised Banco Familiar and its subsidiaries through a team integrated by Juan Bautista Fiorio, Bruno Fiorio and Jean Saavedra.
