Chile—due to its macroeconomic stability, institutional framework, and strategic natural resources—has become fertile ground for this type of transaction.
The global mergers and acquisitions market has undergone a significant transformation in recent years. The current trend shows a reduction in the total number of transactions, but with an increase in their size and impact. In this context, Chile—due to its macroeconomic stability, institutional framework, and strategic natural resources—has become fertile ground for this type of operation.
The consolidation of major players in key sectors, such as mining, energy, and infrastructure, responds to a need for scale, resilience, and efficiency. In markets such as Chile’s, which is highly exposed to global demand for raw materials and has a relatively stable legal framework, these operations allow for cost optimization, centralized decision-making, and more robust competition. For the companies involved, the appeal is clear: to create value through operational and financial mergers, rationalize assets, and share risks in high-investment projects.
However, this phenomenon also poses significant challenges for Chile’s legal and economic environment. From a regulatory standpoint, large-scale operations put pressure on free competition frameworks. Chilean institutions must be prepared to assess not only the structural impact on relevant markets, but also possible indirect effects, such as bargaining power vis-à-vis suppliers or access to key inputs.
There is also a risk that the Chilean market will become overly dependent on a small number of international conglomerates. This can lead to concentration effects in strategic decision-making that affect employment, territorial development, and local innovation. In a country where much of the economy is based on non-renewable natural resources, it is critical that public policies incorporate a long-term vision aimed at balancing investment attraction and productive diversification.
From a legal standpoint, large M&A transactions require complex and multidisciplinary advice. Sophisticated coordination between local lawyers and international teams is required to address due diligence processes, regulatory review, tax structuring, and the design of post-merger corporate governance schemes. These transactions also often include representation and warranty clauses, shareholder agreements, and transition contracts that require expertise and experience.
Chile has the opportunity to consolidate itself as a regional hub for complex transactions, but to do so it needs to strengthen its regulatory framework, equip its agencies with greater technical capacity, and promote greater transparency in strategic sectors. An active and modern M&A policy—combining incentives with requirements—can turn these types of transactions into levers for economic development and sophistication.
Ultimately, concentration in large transactions is neither good nor bad in itself. Its impact will depend on institutional preparedness, the quality of regulation, and the strategic vision adopted by the country to properly channel its effects for the benefit of economic development, competition, and the public interest.
Written by:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Raimundo Busquet | Associate Corporate and Business Group | rbusquet@az.cl
Source: The Legal Industry Reviews, Issue 23 No. 2. [See here]
