CHILE Trends and Developments Contributed by: Luis Felipe Hübner, Diego Marín Ithurbisquy, Felipe Hübner Vadivieso and Valentina Fuentes, UH&C Abogados
Overview of the Chilean M&A Market in 2024 The Chilean M&A market in 2024 experienced a moderate slowdown following a period of mixed performance. According to TTR Data’s Annual Report (2024), Chile recorded 367 transactions valued at approximately USD13,272 million in 2024, marking an 8.68% decrease in total deal value and a 9.61% reduction in the number of transactions compared to 2023. This follows a somewhat mixed performance in 2023, when the Chilean market recorded 384 transactions valued at approximately USD15,031 million, reflecting a 22% increase in volume and a 2% rise in aggregate value compared to 2022, which registered 314 transactions with a total value of USD14,723 million. Despite these recent fluctuations, specific sec - tors have demonstrated notable resilience, par - ticularly consumer goods, energy and industrial and financial services, continuing to attract sus - tained investor interest amid economic uncer - tainty. In 2025, market conditions are projected to improve as geopolitical tensions ease, interest rates trend downward, financing becomes more accessible, and the significant weakening of the local currency potentially attracts further foreign investment. Coupled with targeted governmen - tal economic incentives, these factors are antici - pated to restore investor confidence, positioning Chile’s M&A market for a meaningful recovery. Investor activity is especially projected to grow within high-potential and resilient sectors such as technology, fintech, renewable energy and consumer goods. Regulatory Impact in the M&A Market: What to Expect in 2025 Regulatory developments have significantly shaped the Chilean M&A landscape in recent years, introducing new complexities and oppor - tunities for businesses and investors. As we
approach 2025, the continued evolution of regu - lations – particularly in areas such as labour and social law, data protection, economic crimes, cybersecurity and ESG compliance – is expected to have profound implications on transactional strategies, risk management practices and valu - ation processes. Investors are advised to follow these regulatory developments closely, under - standing their potential impacts to effectively navigate the market and capitalise on emerging opportunities. Personal Data Protection Law Chile’s comprehensive data protection law (Law No 21.719), inspired by the European GDPR, is set to take full effect in December 2026. While it has not yet been enforced, its anticipated impact is already shaping M&A transactions in Chile. Companies involved in M&A must begin align - ing their data protection compliance practices to avoid risks associated with future enforcement. Notable implications include the following. • Greater regulatory scrutiny: Even before the law is enforced, investors and buyers are conducting deeper due diligence into data- handling policies and historical compliance, making data governance a key determinant in deal structuring. • Emerging transactional risks: The evaluation of potential liabilities associated with data breaches and non-compliance has led to increased negotiation over indemnity clauses, purchase price adjustments, and extended escrow periods to mitigate risks. • Challenges in cross-border transactions: With stricter controls over international data transfers expected, companies engaged in M&A transactions must ensure their contracts comply with both local and foreign data pro -
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