BEST LAW FIRM -- CHILE
Chile’s Claro y Cía, established in 1880, is no stranger to complex M&A. In 2010 it acted as legal counsel for LAN Airlines in its merger with Brazil’s TAM that promises to be the largest airline in the region.
"This is a breakthrough
deal because the merger of two international companies is
something that had never been seen before in Chile," says
Felipe Larraín, Claro y Cía partner who worked on
the deal. "With this transaction, LAN increases its exposure to
investors outside of Chile."
Synergies alone are
expected to generate $400 million annually, according to
regulatory information on the deal. LATAM will have combined
revenues of $8.5 billion and market capitalization of about $12
billion, say the merging entities. According to Larraín,
LATAM will be listed in Chile, have ADRs in New York, and also
gain access to the Bovespa.
The transaction is also interesting for regulatory hurdles
overcome. Larraín says that for the deal to materialize,
all sides had to find a way to comply with Brazils
requirement that 80% of the local companys voting shares
remain in the hands...
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