Streamlinining Salvadoran acquisitions
A foreign company, which wants to acquire a Salvadoran business, no longer has to go through a full review procedure, in order to determine, whether or not the acquisition creates an unacceptable concentration of economic power.
A potential buyer still must show that the acquisition does not change local competitive conditions.
Nevertheless, this condition is satisfied, when the transaction involves the takeover of a Salvadoran business by another entity, which has no presence in the country.
Previously, any acquisition of a significant Salvadoran business could be subject to a full assessment, which can take as much as six months – potentially longer, in the case of a major transaction - with the legal and administrative costs, which such a procedure implies.
El Salvador’s Supertindency of Competition last year adopted the new pratice. The relevant law does not specify the types of transaction, which the Superintendency must review.
The issue is important for El Salvador, where several major deals have taken place during the past year, including the acquisition of control of Taca by Colombia-based Avianca, and the takeover of the local operations of HSBC by Colombia’s Davivienda.
For more information, please contact Oscar Samour at ( 503) 2209-1605 or 2209-1600, or at [email protected]