ECUADOR Trends and Developments Contributed by: Félix Reyes, Lorena Barrazueta, Jorge Sicouret Zea and Karla Condo, Coronel & Pérez
second round of elections is scheduled for 13 April 2025. The economic policy and the level of openness to foreign investment will largely depend on the outcome of these elections. A Two-Year Review of M&A Activity In 2024, the volume of transactions approved by the Superintendency of Economic Compe - tition was similar to that in 2023. In 2023, 13 economic concentrations were authorised, pri - marily in the aquaculture and fishing, food man - ufacturing and hydrocarbons sectors. Notable transactions included the acquisition of 20% of the shares of Pesquera Santa Priscila , a leading shrimp producer and exporter, by the Japanese multinational Mitsui & Co for USD360 million; the purchase of 100% of the shares of Industria de Alimentos La Europea , one of the main produc - ers of cold meat, by Pronaca; and the acquisition of 29.66% of the shares of Oleoducto de Crudos Pesados by Pampa Energía Bolivia . Despite the widespread economic contraction in 2024, there was M&A activity, particularly in the food and beverage industry. Among the most prominent deals were Sucesores de Jacobo Paredes acquiring 100% of Industrias Catedral , with both companies being engaged in the pro - duction and commercialisation of pasta, flour and cereals. Additionally, the Peruvian group named “Gloria” purchased Ecuajugos, operated by Nestlé in the dairy and juice sector (although the Superintendency of Economic Competition conditioned the deal due to potential risks in the condensed milk market). Furthermore, the DANEC group acquired 96% of Waykana Inc, a company that controls a group specialising in the production and distribution of tea-based energy drinks. In the cement industry, the economic concentra - tion between Holcim and Lafarge was rejected,
while Union Cementera Nacional , part of the Gloria group, was authorised to take control of Ecoluz. In the hydrocarbons sector, a transac - tion was approved where Pampa Energía Bolivia , which had already acquired shares in Oleoducto de Crudos Pesados in 2023, consolidated its control over 100% of the company’s shares, both directly and through related companies. Additionally, Corporación Favorita , one of the leading players in the retail sector, was author - ised to take control of 56.13% of the shares of TIPTI, an Ecuadorean online shopping platform offering supermarket and specialty store delivery services. Overall, there was an increase in M&A transactions within the food and beverage sec - tor during both 2023 and 2024. Key Developments Reintroduction of free-trade zones In December 2023, the Organic Law of Eco - nomic Efficiency and Employment Generation entered into effect. This law seeks to strengthen Ecuador’s economy by implementing measures that, among other things, make it more attractive for both local and foreign companies to invest in Ecuador. One of these measures was the reintroduction of free-trade zones to the Ecuadorean legal sys - tem. These are geographical areas in which spe - cial regimes apply in foreign trade, customs, tax, financial and capital treatment matters, among others. This new regime is open to new investors wishing to establish themselves as free-trade zones, as well as to those that had already been approved to operate free-trade zones under the previous law and those who had already been approved to operate “special economic devel- opment zones” . Free-trade zones grant tax benefits for both operators and users in all their legal acts and
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