The Corporate and M&A legal market in Guatemala

Our experts, Ignacio Andrade Aycinena, Melissa Morán and Lester Meda, authored the guide corporate and M&A for the Guatemalan legal market for Chambers Global guide by the prestigious Chamber and Partners.

In the guide, our team of lawyer’s comments on the effects the general elections in June 2019 had, which inevitably decreased the economic activity of the country due to the uncertainty of having new authorities and, with them, new processes. Inbound work has been reduced and intra-regional M&A activities had some increased level of activity.

Inbound M&A activity remained important in the region, although regional acquisitions in the M&A market saw also some activity. The top trends in Guatemala in the latter part of 2019 were financial services, telecommunications, and real estate.

Major, publicly announced transactions were the acquisition of Banco Agromercantil Financial Group by Bancolombia, Sale of Loan Portfolios between Local Banks. The use of M&A models to resolve family business disputes is also an activity which has increased in the local M&A market.

The industries that experienced significant M&A activity in the past 12 months in Guatemala are Mining, Energy, financial services, telecommunications, and real estate. Recent Court Rulings stopping mining exploration work and Hydro project construction sparked a level of M&A Activity in the Mining Sector, as several mining licenses have been suspended.

In the Financial Services, modifications of Financing Companies Licences to Bank Licences have been seen, and the acquisition of Bank Participation shares by players in the Region. Investment activities for Insurance companies have also suffered the acquisition process, and the acquisition of Assets in the insurance and Finance Part of the Financial Services industries have been also seen activity.

In the Telecommunications Sector, the Sale of Telefonica’s operations in the Region has been the major attention holder for the M&A Scenario in the Region during 2019. The real estate market saw some level of activity at the commercial level.

For more information about corporate law and mergers and acquisitions and the Guatemalan legal market, we invite you to read the complete guide that you can download here.