Brazil & Southern Cone - June 2015 (ISSN 1741-4431)

FDI: In late May the United Nations (UN) Economic Commission for Latin America & the Caribbean (Eclac) released its annual report on foreign direct investment (FDI) in the region. According to the report, inflows to Chile were up 14% in 2014 to US$22.0bn, despite falling investment in the crucial mining sector (see sidebar). Eclac noted the acquisition by Spain’s Gas Natural Fenosa of Chile’s Compañía General de Electricidad for a total of US$3.3bn, making the Spanish company the largest player in the Chilean electricity market, with a 40% market share. Other noteworthy investments included: Abbott Laboratories (US), which announced a US$2.9bn takeover of CFR Pharmaceuticals, a Chilean pharmaceuticals company with assets in several Latin American countries. Brazil’s Itaú Unibanco acquired a controlling stake in Corpbanca for an estimated US$2.85bn, although the deal is still subject to regulatory approval. Alliance Boots, which is controlled by Walgreens and KKR (both of the US), acquired Farmacias Ahumada, which operates in both Chile and Mexico, for US$740m. Finally the acquisition of Bupa Chile by the British United Provident Association was valued at approximately US$497m.

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