Chile: Competition Court opens probe on Sheraton purchase

Chile’s competition defence authorities started a probe last week, in order to evaluate the possible impact of the planned purchase of Sheraton Hotels and San Cristobal Tower hotel by the Hoteleras de Larrain Vial Investment Fund. The probe will seek to address any possible violations of competition law.

In 2013 the Larrain group purchased the Ritz Carlton, Crowne Plaza and InterContinental hotel chains in Chile, a move that was closely watched by Chile’s National Economic Prosecutor (FNE). At the time, the regulator determined that there was no risk of unilateral or collusive threats to competition.

However, the agency pointed out that this determination could change should the Hotel group purchase any further Luxury Hotel chains. The country’s competition authorities have warned that, should the transaction go through, the Larrain Vial hotel group would certainly reach worrisome levels of dominance over the sector.

Source: Diario Financiero

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