Peru: Congress to consider merger control legislation

Peru’s Consumer Defense Commission, part of the country’s Congress, is seeking approval for a proposed legislation that would force companies to obtain a preliminary evaluation and approval from the country’s competition regulator INDECOPI, before initiating any M&A transactions.

The proposed law calls for prior evaluation of all acts of business concentration, authorizing only those which do not cause harm to the market’s effective competition, or which demonstrate sufficient economic efficiency gains to compensate said restrictive effects by passing benefits on to consumers.

The law, in a previous version, was first presented by the commission’s Nationalist bench back in April of 2011, and has been approved by the same commission. However, the Economics Commission has so far withheld their approval. Current legislation only requires similar preliminary reviews for mergers in the electric and energy sectors.

Source: Entorno Inteligente

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