The Supreme Court of El Salvador has temporarily banned imports of Pepsi following a dispute between Guatemalan bottler Embotelladora La Mariposa (ELM) and its local competitor Embotelladora La Cascada (ELC). PepsiCo has put together a legal team in an effort to persuade the Court to reverse its 14 January decision.
In a bid to aid state decision-making, the Inter-American Development Bank (IDB) has approved a US$25 million dollar-denominated loan to Guatemala to help strengthen its statistics institute, the Instituto Nacional de Estadísticas (INE), and to enable a population and housing census and an agriculture census to be carried out. The bank announced its decision on January 15.
Mexican bottler Coca-Cola FEMSA (CCF) has announced that it will acquire Miami-based rival Panamerican Beverages Inc (Panamco) for US$3.6 billion in a deal that covers operations across the region. The deal is expected to close in the second half of this year.
A Guatemalan court has cut off one of the government’s most important sources of revenue - fuel tax. The Constitutional Court of Guatemala published a ruling on 18 December declaring Article 13 of the Law on Distribution of Petroleum Products unconstitutional, effectively preventing the collection of further tax.
The International Finance Corporation (IFC) has invested US$40 million in the Unión de Bancos Cuscatlán (UBC), a financial group in Central America. The deal was closed on October 2.
International development organisation Corporación Andina De Fomento (CAF) has issued short-term notes to the value of €500 million (US$504 million) in the Spanish Fixed Income Market (Mercado AIAF de Renta Fija). The programme was cleared on November 15, and its term will expire a year from that date.
International accountancy and consulting company PricewaterhouseCoopers International (PW) has sold its management consulting business to International Business Machines (IBM), including all related assets in Latin America. The deal closed on October 1, and the purchase price was US$3.5 billion.
Australian food company Burns Philp and Co has bought the Latin American yeast and industrial bakery subsidiary of Kraft Foods International for US$110 million. The deal closed on October 31.
The IADB and the OECD have just established a new partnership to help
The recent accounting scandals have thrown the spotlight on practices within the legal profession and in particular on how conflicts of interest are resolved. Professional liability insurance is virtually unknown in Latin America, and clear standard corporate governance rules are hard to come by. But, as Rachel Youngman discovers, change is underway.