A bill that looks to establish tighter regulation for mergers and acquisitions in Peru has been presented in Congress, El Comercio reported.
The bill seeks to establish a rule of prior control for mergers and acquisitions in the country. The rule specifies that two or more companies looking to do an M&A transaction should undergo a previous control if their joint sales during the previous year add up to at least 120,000 tax units, or UIT, equivalent to 480 million Peruvian soles this year.
The Congress' economic and consumer defense commissions are expected to vote on the bill.
Major business groups have expressed dissent against the bill, saying that it will negatively impact the country's competitiveness because it would require more financial and technical resources for an M&A. The bill would also be unconstitutional if Congress allocates more resources to Peruvian watchdog Indecopi to implement the control, according to the groups.
For Confiep, a local business association, the establishment of ex-ante control for M&A operations is unnecessary given that ex-post control already exists to restrict the abuse of dominant position.
As of March 21, US$1 was equivalent to 3.26 Peruvian soles.