Peru: Congress approves Law to control corporate M&A.

Peruvian Congress approved last Thursday, in a first voting round and waiving a second voting round, a bill seeking the regulation of M&As. The new regulation is scheduled to take effect in 2020.

The bill contained 13 proposals and included provisions of the project issued by the Executive in March 2019. The National Institute for the Defense of Free Competition and the Protection of Intellectual Property – INDECOPI – will be the entity in charge of reviewing M&A processes. INDECOPI will have a twelve-month term to adapt to the standard and to fulfill its functions regarding the oversight of M&As.

The Law contains, among other aspects, economic criteria for prior review of M&A transactions, as well as special regulations of the financial sector and criteria triggering the participation of the Superintendence of Banking, Insurance and Securities regarding securities operations.