Baker McKenzie advised Empresas Públicas de Medellín (EPM), a public utility service company in Colombia, in the bidding process to acquire CaribeMar from Electricaribe, the largest utilities company in Colombia.
Before the bidding process, Electricaribe was split into two new electricity providers: CaribeMar and CaribeSol. CaribeSol was acquired by Consorcio Energía de la Costa.
"The complex situation of Electricaribe, the decision of the National Government to divide Electricaribe's assets into two companies, as well as the difficulty inherent in an auction process, made it an especially complex process," stated Lead Partner Andrés Crump.
The deal dates back to 2016 when Electricaribe's operations were seized by the Colombian government authorities, as Electricaribe's financial difficulties raised doubt over its ability to provide electricity to its 10 million customers in all the northern region of Colombia.
The EPM initiative will allow the company to reach 1.5 million new users, which would mean an expansion in its services to a total population of 19 million people.
“The transaction makes EPM the largest energy distribution and commercialization company in Colombia, with a market share of ~35% and it would be one of the most significant that the National Government has carried out in recent years,” added Andrés Crump.
The deal was awarded to EPM on 20 March 2020. Baker Mckenzie in Bogotá, acted as EPM's exclusive legal advisor on the Transaction. The team was led by Andrés Crump (Principal), Natalia Ponce de León and Juliana Tobón (associates).
Considering the inherent complexity of managing cross-border, cross-practice processes that are required by major projects in Latin America, Baker McKenzie links clients to the resources and expertise demanded by these projects with unmatched fluency, getting their deals done in time and with right team in place.