DLA Piper in Latin America: 2018 in Review
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DLA Piper in Latin America: 2018 in review DLA PIPER IN LATIN AMERICA: 2018 IN REVIEW Letter from the Chair 2018 has been a year of growth and expansion for DLA Piper across Latin America. We are realizing our vision of developing an integrated client service model in the region that reflects how and where multilatinas and other multinationals operate. Despite challenges that Latin America has seen this past year – several political changeovers, large-scale investigations and allegations of bribery and corruption, as well as natural disasters – companies are thriving and metropolitan areas are experiencing unprecedented growth. While challenges always lie ahead, DLA Piper Latin America is invested in the region for the long term. In Chile, we expanded by merging with Noguera Larrain y Dulanto and adding capabilities to the already sophisticated and top-tier team of lawyers in Santiago. We opened our doors in Buenos Aires, joining with a prominent law firm providing companies with the full suite of legal services with a focus on securities and capital markets, energy, infrastructure and P3. In both Mexico and Colombia, we welcomed several high-profile lateral partners in the corporate/M&A practice, all of whom have significantly contributed to the level of service for our clients undertaking large- scale transactions with the concurrent recognition in ranking putting us among the most prominent firms. Peru’s team participated in a fundraising trek in Machu Pichu for the firm’s support of UNICEF. Our Puerto Rico team’s work on P3 projects is contributing to the island’s rebuilding and has had a material impact. In Brazil, Campos Mello Advogados has seen significant growth and success serving clients on large cross-border transactions, building brand equity. There are great challenges to meet and opportunities to realize in 2019. Among them: the steep deficits in Brazil; the election of Lopez-Obrador in Mexico with a new trade deal to contend with; continuing questions about protectionism with the most important trading partners in the region; ongoing multijurisdictional investigations affecting companies and governments alike; the political crisis in Venezuela; the political environment and lagging economy in Peru; and the effects of a recessionary 2 WWW.DLAPIPER.COM rebound and the fiscal vulnerability of both Argentina and Brazil. At the same time, we also are excited by the region‘s continuing growth in consumer demand, and numerous planned infrastructure and energy projects. In 2018, we inaugurated our Latin America Women’s Initiative and are proud of the Initiative’s leadership team, composed of the senior women partners and counsel across our Latin America offices. The group brings together the cultures and talent of many diverse and committed lawyers and staff. The group will produce significant, valuable events and advocacy throughout 2019. In this publication, we provide you with a brief look at Latin America in 2018 through the prism of legal services our team provides on behalf of our valued clients across the spectrum of industry sectors. Roger Meltzer Global Co-Chairman and Americas Co-Chairman New York T +1 212 335 4550 [email protected] 3 DLA PIPER IN LATIN AMERICA: 2018 IN REVIEW Q&A with Roger Meltzer, Co-Chairman, DLA Piper, and Co-Chairman, Americas; Noah Mamet, Former US Ambassador to Argentina and DLA Piper Strategic Advisor; and Marcelo Etchebarne, Country Head, DLA Piper Argentina DLA Piper welcomed Argentina-based law firm Cabanellas Etchebarne Kelly into the firm in an agreement signed in August 2018. Roger: Tell us a little about the firm and the strategy of heads the G20. President Mauricio has been forward- this cooperation. thinking in his strategy of carrying out structural reforms. Interestingly, strong support for Argentina Marcelo: We had been approached by a few is one of the few policies that both Democrats and international firms, but after conducting a thorough Republicans agree on in Washington. diligence, we concluded that DLA Piper’s M&A, capital markets and global platform was the best fit for CEK. Marcelo: We have no doubts that Argentina will The agreement our firms reached was complementary do well in the medium and long term, despite the for both firms – ours is also a full-service business law exchange rate crisis. The complete deregulation of firm with a focus on foreign investments, M&A, cross- the financial and exchange markets, coupled with a border disputes, restructuring and capital markets. We very gradual reduction of its deficit and balance of had worked extensively with Chris Paci (partner, New payments, generated US$120 billion in inflows, while the York) on numerous deals, so we already knew how the Central Bank reserves only increased by US$35 billion. firm worked and how well we worked together. We have The government initiated major long-term reforms significant capabilities in international disputes and to have a more competitive economy but failed in arbitration, white collar and investigations, real estate, macroeconomics. The IMF solved the fiscal deficit and employment, corporate governance and tax. the market reacted positively through adjustments of the exchange rate. Stability will depend in large part Roger: For a global firm with 5,500 lawyers with more on the government’s ability to provide the necessary than 90 offices in 40 countries, Buenos Aires is a restraint until the economy and employment recover in commercial and financial center where it was natural for 2019, but we trust that today it has the tools to do so, us to want a presence in order to build out our platform unlike in 2002. in South America. In implementing our pan-hemispheric strategy in Latin America, we saw Argentina as the last Roger: We see opportunities for our clients in a number critical piece in our expansion in the region. of sectors. Equity pricing of public companies (listed on the stock exchange) suffered enormous adjustments There are a lot of uncertainties about the Argentina in their valuations, with losses of up to 80 percent. economy and political situation. Why is now the right While a factor for sure, stock market volatility does not time for a tie-up? necessarily impact the sale and valuations of non-listed companies. We see opportunities in the infrastructure, Noah: Argentina is the third largest country in Latin oil and gas, electricity generation, transmission and America, both in population and GDP. It has a large, distribution and technology sectors. educated middle class and is one of the main trading partners of Brazil. It maintains an important strategic Noah, how did you develop the relationship with Marcelo relationship with the US as well as China and this year Etchebarne and what is your role? 4 WWW.DLAPIPER.COM Noah: As part of my responsibilities as ambassador, I My decision to work as a senior advisor to DLA Piper regularly met with top business leaders and lawyers in was also influenced by my meetings with Roger Meltzer Argentina, including Marcelo, who was well known and and his team, in which they demonstrated a strong highly respected, as was his firm. After returning to the commitment to expand their footprint in Latin America, business sector last year, I was able to work with Marcelo aligning perfectly with my goal to increase trade within on a number of important business transactions. the region. Q&A with Chile Managing Partners Matias Zegers and Felipe Bahamondez With the NLD combination, the firm’s Santiago office What are some of the main issues that multinationals now includes approximately 50 lawyers, making it one face when seeking to expand operations or invest of the largest legal services providers in Chile. Can in Chile? you tell us how clients can benefit from DLA Piper’s presence in Chile ? It depends on the industry, but, in general, I think that the main issue investors face is the uncertainty of Clients can benefit in several ways. First, thanks to obtaining governmental permits (eg, environmental DLA Piper’s global platform, local clients can receive permits) that can be contested later at the courts due to services not only in Chile but also in other countries, pressure from local communities. and such matters can be handled through us in case they want to work with someone whom they know. What are some of the key sectors and practices that Foreign clients also can be assured that they will receive you expect to work with the most across the global the highest level of service since we are now part of a DLA Piper platform? prominent international firm with high standards. Since we are a full-service business law firm covering all How has the political environment affected the matters that are relevant for large companies, we expect delivery of legal services in Chile, and what is the to work with the broader firm on corporate matters and outlook for business looking to invest in the future? especially M&A, litigation, tax and IT. The current political environment has had a positive impact on the economy in general, especially in attracting more investment from local and foreign investors. We have seen a meaningful increase in M&A, project finance and work generally related to new projects and investment. The outlook for businesses seeking to invest in Chile in the future is extremely positive. 5 DLA PIPER IN LATIN AMERICA: 2018 IN REVIEW 6 WWW.DLAPIPER.COM About our pro bono work On any given day, DLA Piper’s lawyers and staff across the country and around the world are committing their time, talent and energy to pro bono works that ensures access to justice, promotes the rule of law, and provides legal services to those unable to afford a lawyer.