With the sluggish US recovery and the European sovereign
debt crisis pushing investment into Latin Americas
emerging economies, attorneys must take note of antitrust
reforms spreading across the region.
Legislative changes remove competition uncertainties in
Brazil and Argentina, but create new concerns in Ecuador which
commenced competition regulation in October.
The most monumental change occurred on December 1 when
Brazilian President Dilma Rousseff signed into law the overhaul
of the countrys antitrust authority, Administrative
Counsel for Economic Defense (CADE). CADEs merger review
process will now occur before, rather than after, a deal
closes. CADEs review period has also shortened, which is
hoped will combat the share price volatility experienced under
the post-merger review system.
LAN Airlines recent acquisition of TAM Airlines
provides a good example of shortcomings under the old regime.
The deal between the Chilean and Brazilian airlines was