In an unprecedented and historic operation in Latin America, Philippi Prietocarrizosa Ferrero Du & Uría offices in Colombia, Chile and Peru have acted as legal counsel in the integration of the Colombian Stock Exchange, the Santiago Stock Exchange and the BVL Group under one common regional holding company.
PPU has been working in this matter since 2019; firstly, regarding the study and preliminary analysis about the feasibility and potential paths that would allow an eventual integration between the exchanges; in February 2022, in the execution of the Investment Framework Agreement; and recently, in the execution of the condition’s precedent provided in such agreement to proceed with the integration, especially with the regulatory filings required.
This represents the first Latin American integration of stock exchanges following the international trend of merging stock markets.
The transaction was led from PPU Colombia by Claudia Barrero (Partner) with the collaboration of Carolina Rozo (Tax Partner), Diego Cardona (Competition law Partner), and associates Juan Jacobo Chávez, Leonardo Cote and Natalia Castilla. In PPU Chile, Federico Grebe (Partner), Constanza Rodríguez (Counsel) and Juan Pablo Zegers (Associate) participated, and in PPU Peru, partner Antonio Guarniz and associate Víctor Bravo worked on the transaction.
Claudia Barrero commented: “This is a unique and unprecedented transaction in the region. The corporate integration of the Colombian Stock Exchange, the BVL Group and the Santiago Stock Exchange is the beginning of the integration of their respective markets, creating a more liquid and deeper market for issuers and for investors. The region needs a more competitive securities market and this is certainly the first step in that direction. Such a cross-border integration of highly regulated entities with such a significant impact on the economies of the three countries had major regulatory and business challenges, but the hard work of all the teams involved and the ability of those leading the project to convey the need to create a more competitive market were essential in bringing the transaction to fruition. PPU is proud to have teamed up in its regional capacity to facilitate an integration that will contribute to the development of the region”.
The value of the transaction, signed on 14 November 2023, is confidential.