Colombia merger control (2019)
Produced in partnership with Lloreda Camacho & Co
Colombia merger control (2019)

The following Competition guidance note Produced in partnership with Lloreda Camacho & Co provides comprehensive and up to date legal information covering:

  • Colombia merger control (2019)
  • 1. There have been recent developments regarding the Colombian merger control regime. What are the main points of interest and are any further updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Colombia?
  • 2. Under Colombian merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does it differ and what is the position in relation to 'minority shareholdings'?
  • 3. Are joint ventures caught by the national merger control provisions (including non-structural, cooperative joint ventures)?
  • 4. What are the merger control thresholds and would a purely foreign-to-foreign transaction be caught (commenting on any ‘effects’ doctrine/policy if relevant)?
  • 5. Are there any specific issues parties should be aware of when compiling and calculating the relevant turnover for applying the jurisdictional thresholds?
  • 6. Where the jurisdictional thresholds are met, is notification mandatory and must closing be suspended pending clearance?
  • 7. Is there any discretion to review transactions that fall below the notification thresholds?
  • 8. Is it possible to close the deal globally prior to local clearance?
  • 9. Is there a deadline for filing a notifiable transaction and what is the timetable thereafter for review by the SIC?
  • more

A conversation with Dario Cadena, senior associate at Colombian law firm Lloreda Camacho & Co on key issues on merger control in Colombia.

NOTE–to see whether notification thresholds in Colombia and throughout the world are met, see Where to Notify.

1. There have been recent developments regarding the Colombian merger control regime. What are the main points of interest and are any further updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Colombia?

The most recent development involving the Colombian merger control regime was the adoption of lower reporting thresholds for 2017. Until 2016 the reporting thresholds were set at 100,000 times the minimum monthly wages, whilst for 2017 they were lowered by 40% to 60,000 times the minimum wage.

Apart from the new reporting thresholds, the merger review process continues to be governed by the provisions of Law 1340 of 2009 and Resolution 10930 of 2015. There were discussions regarding a bill of law, sponsored by the Superintendence of Industry and Commerce (SIC), the national competition authority, which would had introduced significant changes to the merger control regime. However, the bill was withdrawn from Congress and has not been filed again.

2. Under Colombian merger control law, is the control test the same as the EU concept of ‘decisive influence’? If not, how does