January 1, 2011
"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 regulato
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.