Mergers and acquisitions of companies in the rest of 2018 in Colombia – Business – Economy



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The country's mergers and acquisitions sector awaits the completion of major operations at the end of the year. Up to now, in 2018, operations involving 10,800 billion pesos have been realized, an amount almost greater than that of the whole of 2017, which was 11,000 billion pesos .

"The reactivated operations after the lifting of the semester's election uncertainty will be reflected in the mergers and acquisitions figures for December or next year," said Martha Juliana Silva, president of Silk Investment Bank. [19659003] The need to mobilize liquidity is one of the reasons that pushed the public sector to accelerate the sale of badets in Colombia and abroad.

Operations reactivated after election uncertainty will be reflected in the figures from December or next year

Large Corporations

The Drummond Mining Company is looking for a partner who acquires a percentage of the order of 20% of its shares in order to link it to the operation in Colombia.

This operation has attracted a lot of interest among several players in the coal sector, who are even willing to buy 80% of it.

The remaining shares of the company Drummond belong to the Japanese company Itochu

In recent days, the newspaper 'The Wall Street Journal' announced that American Peabody had discussed the acquisition of a majority stake in the coal bunker . ] in the hands of the Drummond family, under an agreement valued at between $ 4,000 and $ 4,500 million (12.3 to 13.8 billion pesos).

Although the skepticism is hopeful that the negotiations can reach a safe harbor, as foreign investors have reservations about the legal security of mining projects in the country, it is Colombia's largest exporter of minerals, with 32 million tonnes, which equates to about a third of the national production forecast in 2018.

However, good coal prices and the good pace of projects – according to the National Mine Agency (ANM) – could allow to reach the goal of production and success

The president of Drummond Colombia, José Miguel Linares, recently declared that the shareholders had made the decision to find a partner to participate in the company. 39, operation in Colombia. .

"A few years ago, the same offer was made and Japan's Itochu was interested in participating, and it is going through a reasonable market situation that is going to provide some of the production tasks. bring important capital flows to Drummond, "said the director.

Missing Cover

The disposition of the 32.5% that the Nation owns in Colombia Telecommunications (Coltel), which is in its second stage because, in the first one, there was no offers from the solidarity sector, envisages the transfer of 1,100 million titles whose estimated price is 2.28 billion pesos, at a rate of 2,075 pesos each.

The transfer of this badet and other public badets is part of the estimate, which will include the Ministry of Finance in the financing law, to provide resources to mobilize the finances of the country. State in 2019.

Aguas

At the countdown to 2019, there could also be badet movements belonging to Empresas Públicas de Medellín (EPM), since its director General, Jorge Londoño De la Cuesta, said that intended to sell certain goods. the company's badets, such as 10% of the ISA and Group companies in Chile .

The resources will be used to optimize the cash flow of the integrated company, affected by the unforeseen circumstances of the Itango hydroelectric project. and to conclude said construction.

Redevelopment of "Pumps"

For the remainder of the year, the Esso and Mobil service stations could also be sold, but due to their proprietary packaging (Terpel), the Superintendency of Commerce and of Industry (SIC) today administers a trust. The deadline for sale is 15 November and the trade is estimated at 1.5 million pesos.

The landing is missing

The alliance that has been negotiating for about 20 months between Avianca Holdings and United Airlines, and which the Panamanian airline Copa Airlines joined in August, could finally take off before December 31, and become another great move of 2018.

The eventual agreement is designed to offer travelers advantages over the road network of the three companies, between the United States and America Latin.

The strategic and commercial alliance with three airlines of the importance and trajectory of Avianca, Copa and United also open up connectivity and routes on the American continent.

In gases

This year, the German industrial gas producer Linde is also expected. divested a portion of its gas activities in North and South America, including Colombia, for $ 3,300 million, to a consortium formed by the Messer group and investment financial ionist CVC

The operation aims to facilitate the merger process with US companies Praxair . In the case of Colombia, the Superintendency of Industry and Commerce (SIC) has imposed conditions on free competition, which is limited by the decision of the parent companies of the Linde and Praxair subsidiaries to merge.

With this integration, Linde and Praxair would become the largest industrial gas manufacturer in the world, with annual sales of approximately $ 32,000 million. The turnover of companies in Colombia, excluding divestments ordered by CLC, amounts to about $ 325 million.

Poultry Farming

Aviagen Group Holding, a subsidiary of the EW Group (Germany) agglomeration, plans to acquire, directly or through controlled companies or trust vehicles, 90% of the outstanding shares of Avicola Colombiana (Avicol).

The activity does not include the 10% owned by the Colombian company Avidesa Mac Pollo.

Aviagen does not have any entities, establishments or businesses in Colombia – only participates or exports "grandmother hens for fattening" and "breeding hens" of Brazil and, occasionally, the United States. UU.- It is likely that the operation does not raise any objection from the Superintendency of Industry and Commerce (SIC).

Avicol was created in 1959 and its activity is focused on the production of breeders and breeders of the heavy line (father and dam of the fattening chick.)

Originally it represented and distributed the Arbor Acres gene mark and is currently the exclusive representative of Colombia for Ross Genetics.

From 1993, the company included in its product portfolio the line of Hy-Line layers.

Losdatos.com Director, Luis Bernardo Naranjo Ojeda, declares that the Avicol sale to Aviagen The strategy of this multinational to acquire its own distributor in Colombia is a natural step.

"The peace agreement improves the field investments of multinationals and local groups," said Naranjo.

According to the platform, Avicol registered in 2017 a turnover of 88.780 billion pesos ] In addition, it exported 1.6 million dollars and imported 5.7 million dollars . It employs 543 people.

Other activities

In the health sector, particularly that of hospital services, such as cardiovascular treatment, Avidanti acquires 85% of the capital of Angiografía de Colombia After the economic concentration, they plan to extend the services of diagnostic, therapeutic and cardiovascular treatment.

Griffith Foods, manufacturer of sauces and salad dressings with a factory in Antioquia, will acquire shares and capitalize on Inversiones Vallejuelo, which produces fruits, legumes, vegetables and tubers. After the end of the pair of operations, Griffith Foods will hold 60% of the outstanding shares of Inversiones Vallejuelo.

For its part, Mineros SA announced the signing of an agreement for the acquisition of 100% of the stake in the gold mine of Gualcamayo in Argentina and of A purchase option agreement in the La Pepa gold exploration project in Chile, both with Yamana Gold of the largest mining companies in production in the world.

With this transaction, Mineros extends its portfolio to an active quarter of production


The acquisition of Gualcamayo provides Mineros with a mine with a long operating history.

Currently, Gualcamayo is on track to achieve a production forecast
of 100,000 ounces of gold by 2018, which will contribute significantly to the production of miners.

The operation also represents a significant advance the growth strategy of the Colombian company, which aims to increase gold production to 500,000 ounces per year.

Currently, Mineros produces 200,000 ounces of gold annually The addition of the Gualcamayo mine and its growth potential will allow it to become a gold producer of intermediate level focused on Latin America.

ROLANDO LOZANO GARZÓN
Economics and Business

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