GUATEMALA Law and Practice Contributed by: Ignacio Andrade Aycinena, Alejandro Solares Solares, Claudia Pontaza Rubio and Lester Meda Ruano, Lex Atlas
1. Trends 1.1 M&A Market
tor, a new bidding process for generation was announced, with bidding terms released in November. International bank loan and multilat - eral loan activity was the highest segment within FDI in 2024, according to the Guatemalan Cen -
The Guatemalan Political environment has set - tled, allowing for an increase in M&A market activity in 2024. The decline in infrastructure investment has exacerbated the country’s logis - tical problems. The telecoms market remained active in terms of acquisitions and consolida - tions in 2024, and the electricity generation seg - ment picked up, with fresh investment in elec - tric distribution. The government called for an electricity generation auction with fifteen-year contracts in a new bidding process at the end of the year. Multilateral and international bank loan activity also picked up, and foreign direct investment (FDI) rose to USD462 million in the third quarter (3Q). In addition, a number of gov - ernment initiatives has resulted in a new compe - tition law allowing Guatemala to become com - pliant with International Trade Agreements, and a new road investment law permitting private investment in highways and prioritising projects for road network improvements. Issues with transportation and logistics continue to hamper economic activity. A law was also enacted to promote security within the port system which will enable the country to continue cargo activi - ties to the ports of China and elsewhere in the world without limitation. Economic activity in Guatemala increased in the first two quarters of 2024, but fell in 3Q. GDP rose to 3.5% over the full year, supported by money remittances from abroad, which have continued to increase as the flow of migration to the United States has also continued. Key Sectors The country’s largest telecommunications oper - ator announced a change in ownership during 2Q, leading to some market restructuring and M&A market movements. In the energy sec -
tral Bank (GCB). 1.2 Key Trends
M&A in Guatemala has picked up, and public private partnerships in infrastructure are expect - ed to begin activity in 2025. • The PEG-5 bidding process is expected to take place in Guatemala in 2025. • The new authority for road development will start the first steps of its bidding process at the end of 2025 for road infrastructure invest - ment and contracting. • The call centre segment has been growing consistently at a rate of 17% per year. It grew in 2024 from 48,700 to 55,000 positions. • The textiles sector remains stagnant; garment manufacturers have not expanded opera - tions. The most notable outbound M&A activity was the announcement by CMI, owner of the Pollo Campero franchise, of the expansion of food- producing plants in Guatemala and Costa Rica, as well as the opening of new restaurants in the US. 1.3 Key Industries The industries that experienced the most sig - nificant M&A activity in the past 12 months in Guatemala are telecommunications, energy and the financial sector. The construction and hous - ing sectors also expanded their activity in 2024.
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