ECUADOR Trends and Developments Contributed by: Félix Reyes, Lorena Barrazueta, Jorge Sicouret Zea and Karla Condo, Coronel & Pérez
However, this early electoral strength gave way to a major political setback later in the year. On 16 Novem - ber 2025, Ecuador held a nationwide referendum in which voters rejected four constitutional amendment proposals presented by the government, including the establishment of foreign military bases, the elimination of public financing for political parties, a reconfigura - tion of the National Assembly, and the convocation of a Constituent Assembly to draft a new constitution. With “No” prevailing across all questions – by margins reaching over 60% in several cases – the results deliv - ered the first significant defeat for Noboa’s adminis - tration. Institutional tensions deepened throughout the sec - ond half of 2025, due to decisions by the Constitu - tional Court declaring unconstitutional several laws that contained the core of Noboa’s agenda. Despite the political and institutional turbulence of 2025, Ecua - dor continued to re-engage with international invest - ment frameworks. The most significant step was the signing of a new BIT with the United Arab Emirates in December 2025, marking a key milestone in the government’s effort to rebuild its investment-agree - ment network. In parallel, Ecuador advanced BIT-type initiatives with other strategic partners. It signed the Strategic Economic Cooperation Agreement (SECA) with South Korea on 2 September 2025, a broad pact that includes investment-related co-operation. The government also moved towards closer investment alignment with the United States through a Frame - work for a US–Ecuador Agreement on Reciprocal Trade announced on 13 November 2025, introducing commitments on transparency, non-tariff barriers and intellectual property. Likewise, Ecuador and Canada concluded negotiations for a comprehensive Free Trade Agreement on 31 January 2025 – confirmed on 4 February 2025 – which is expected to incorporate investor-state dispute settlement and other invest - ment-related provisions, functioning similarly to a BIT within a broader trade framework. M&A Activity The Superintendence of Economic Competition (SCE) has authorised numerous economic concentration operations that are reshaping Ecuador’s business ecosystem. Among the most significant transactions in the food and beverage sector was the acquisition
by Inversiones Selecta Inselesa Holding SA of 76.73% of Molinos Miraflores SA, a move that strengthened the group’s position in the flour market. In the dairy segment, Vita Alimentos CA completed the full acqui - sition of Delcampo SAS, while Industrial Danec SA expanded its footprint by acquiring 84.75% of La Industria Harinera SA. The insurance industry also saw continued consolida - tion through Grupo Atlántida’s purchase, via IFAEC SA, of 100% of HDI Seguros SA. Additional noteworthy approvals included Corpo - ración Centroamericana del Acero SA’s acquisition of 80% of Crastum Investments SLU, the owner of Ideal Alambrec, as well as Millicom Spain SL’s acquisition of 100% of OTECEL SA, a transaction with significant implications for the telecommunications and mobile services market. Alicorp Inversiones SA strengthened its regional con - sumer portfolio by acquiring 100% of Jabonería Wil - son SA (subject to certain conditions precedent), while in the healthcare sector Davita Cía Ltda completed the purchase of Renalpro CA. The hydrocarbons industry also saw movement, with UNO Petróleos Perú SAC taking majority control of Primax’s Ecuadorian oper - ations; and in pharmaceuticals, Dyvenpro – part of Grupo Difare – acquired Química Ariston to expand its manufacturing capabilities. Expanded AML/CFT Obligations Ecuador has strengthened its anti-money launder - ing and countering the financing of terrorism (AML/ CFT) framework to align with international standards by enacting the new Organic Law on the Prevention, Detection, and Combating of Money Laundering and the Financing of Other Crimes (the “AML Law”) and its General Regulation contained in Executive Decree No 298 (the “AML Regulation”). The AML Law modernises the system through the creation of CONCLAFT, a National Council for Coor - dination Against Money Laundering that operates as a collegiate body for inter-institutional co-ordination. It also expands the scope of monitored conduct, strengthens the supervisory and sanctioning authority of the Financial and Economic Analysis Unit (UAFE, by
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