Monday, February 3, 2020

Mergers & Acquisitions Down in Costa Rica

Costa Rica saw just 25 cases of potential mergers and acquisitions in 2019, down from 40 in 2018 and 37 in both 2017 and 2016, perhaps due to the decrease in the dynamism of the economy. Most of them in the financial and tourism sectors were approved.

The Commission to Promote Competition (Coprocom) did not approve the purchase of Gessa by Walmart, because of the effect it could have on competition in the local market and on consumers.

All companies that have at least two years operating in Costa Rica must alert Coprocom to any potential mergers and acquisitions. Coprocom then analyzes the potential repercussions and establishes measures to counteract potential damage to the market. If the company does not agree to the terms then they cannot merge, at least not in this country.

Some main transactions include the acquisition of BioQuim Industries by the UPL Corporation, the purchase of Kolicox Holding by Roma Prince, the purchase by Gencom of the Hacienda AltaGracia hotel, and the purchase of Kuiki Credit Costa Rica by Grupo San Juan and Lulinkados.

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