Do intensive due diligence to avoid successor liability, say speakers on M&A compliance

The ramifications of Operation Car Wash in Latin America have made successor liability one of the key aspects to consider when buying or selling in the region, making intensive due diligence top on the to-do list for M&A deals, heard delegates at Latin Lawyer’s ninth annual M&A conference in São Paulo last week.

US energy developer buys Colombian power supplier

Paul Hastings LLP in New York and Gómez-Pinzón in Bogotá have advised two Colombian subsidiaries of EnfraGen – part of the Glenfarne Group – on their purchase of energy supplier Zona Franca Celsia.

Big fish in small ponds

It’s no secret that many of Latin America’s largest companies remain controlled by small, concentrated groups reluctant to relinquish control, limiting these entities’ ability to tap into a bigger pool of resources through the capital markets. This status quo makes public M&A deals a rarity in the region. Christina McKeon Frutuoso considers the challenges faced by lawyers when such transactions do arise.

A reformed Mercosur? Don’t hold your breath

The governments of Mercosur’s member states have been vocal advocates of modernising the restrictive economic alliance. Esteban Rópolo of Baker McKenzie (Argentina) and Marcelle Silbiger of Trench Rossi Watanabe in Brazil explain what stands in the way.