CHILE Law and Practice Contributed by: Ignacio Errazquin, Adolfo Romero and Florencia Anguita, CMS Carey & Allende
6. Recent Legal Developments 6.1 Significant Court Decisions or Legal Developments The most significant legal development affecting the Chilean energy and infrastructure sectors is the enact- ment and publication of Law No 21,770 ( Ley Marco de Autorizaciones Sectoriales (the “Sectoral Permits Law”)) on 29 September 2025 (promulgated 17 Sep- tember 2025). The statute establishes a comprehen- sive framework for streamlining and digitalising sec- toral permits, creating a single national platform that will integrate environmental, energy, water, transport and infrastructure authorizations into a co-ordinated process. Law 21,770 has been enacted but not yet implement- ed. Its transitory provisions set out a phased entry into force, contingent upon the issuance of enabling decrees by the Ministry of Economy, the Ministry of Energy, and other sectoral authorities. Certain chap- ters – such as those governing the classification of per- mits and the minimum procedural rules – will become effective months after the publication of these imple- menting decrees, while full functionality of the unified system is expected to materialise progressively during 2026–27. Until then, existing sectoral regimes under the SEA, the Superintendency of the Environment (Superintendencia del Medio Ambiente, or SMA), the CNE, the CEN and the SEC, as well as the MOP’s concessions programme, remain applicable. Once operational, the law is expected to enhance tim- ing predictability and regulatory transparency in pro- ject development – two critical variables in energy and infrastructure M&A valuation. By standardising time- lines, documentation requirements, and data-sharing among authorities, the reform is expected to reduce permitting risk in due diligence and pricing processes for renewable, hydrogen, and grid-expansion projects. During the transitional phase, investors will continue to model both the current permitting framework and the anticipated streamlined regime to assess deal readiness. In parallel, the FNE has tightened merger control anal- ysis for vertical and horizontal integration in the power and fuels sectors. These regulatory improvements,
to concentrate is equal to or greater than approxi- mately USD105 million; and • the sales generated in Chile during the previous year by each of the economic entities that seek to concentrate is, individually, equal to or greater than approximately USD19 million. For the calculation of the sales thresholds, the follow- ing rules apply. • In the case of mergers and joint ventures, the sales in Chile of the economic entities merging or becoming associated – as well as those of their respective corporate groups ‒ are added up. • In the case of acquisition of rights, the sales in Chile of the economic entity acquiring a decisive influence will be added to those of its corporate group and the acquired economic entity. • In the case of acquisition of assets, the sales in Chile of the acquiring economic entities and of their respective corporate groups – as well as the revenue generated by the acquired assets – are added up. The FNE can either: • approve the concentration transaction without conditions; or • depending on the materiality of the risks for competition identified in the process, approve the transaction subject to mitigation measures or deny the authorisation altogether. 5.6 Labour Law Regulations Acquisitions in Chile are not subject to approvals by works council or to similar labour consultation. It is also not necessary to give notice to the target’s employees, as their employment terms do not vary owing to the fact that the employer is being acquired. 5.7 Currency Control/Central Bank Approval A central bank approval is not required for an M&A transaction in Chile. However, foreign funds for an M&A transaction must enter the formal currency mar- ket through local banks, which ‒ in turn – will inform the Chilean Central Bank ( Banco Central ) of the for- eign investment.
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