Scotiabank completed the reorganisation process after the $2.2 billion acquisition of Spanish lender Banco Bilbao Vizcaya Argentaria’s stake of 68.19% in Banco Bilbao Vizcaya Argentaria, Chile (BBVA Chile). Carey, one of the largest law firm in Chile, advised Scotiabank.
From March 1 to September 1, the minimum wage in Chile will be CL$319,000 ($403) per month. This is as a result of applying the multiannual formula agreed in 2018 between the government and the Unitary Central of Workers (CUT) that established a real adjustment of 2.5% if the economy grew up to 4%. The growth outlook for 2020 fluctuates between 1% and 1.3%, and the accumulated inflation in 12 months is 3.5%.
The arrival of tourists to Chile between December and March may fall by 22.7%, the lowest figure in the last 10 years, said the director of the National Tourism Service (Sernatur), Andrea Wolleter. For the summer season 1.6 million foreign tourists are expected, this is 470,888 less than the previous year, mainly due to a considerable decrease in Argentine visitors. The tourism industry, whose 90% is composed of SMEs, represents 3.4% of Chile GDP and generates about 400,000 jobs.
The Chilean Ministry of Agriculture declared in agricultural emergency zone to the communities of San Carlos, Ñiquén, Chillán, Chillán Viejo, Coihueco, San Nicolás, Pinto and Bulnes of the Ñuble Region, due to a severe drought. During 2019 there was a 40% annual rainfall deficit that affects the productive capacities, especially of small farmers in the region, according to the Agricultural Research Institute (INIA).
Santiago de Chile international airport Nuevo Pudahuel (former Arturo Merino Benítez International Airport) issued the commercial tenders of 35 independent packages and 93 separate services opportunities on some 19,130sq m of space in a combination of new and enhanced terminal facilities. Chilean and foreign companies, independently or in joint venture, can participate in the bidding.
Japan-based Mitsubishi Materials Corporation (MMC) has signed an agreement to acquire a 30% interest in Mantos Copper’s Mantoverde copper mine and associated projects in Chile for $263mn. The mine is located in the Atacama region of northern Chile and expected to become operational in 2023. It has 2.1 million tonnes (Mt) of copper reserves and 5.7Mt of copper resources.
Merge and acquisitions in Chile may accelerate next quarter after a sluggish January, according to M&A specialist Alex Nilsen at Hudson Bankers. Research firm Transactional Track Record reported 13 announced and closed deals in Chile for the month, down 61%, while total reported deal value also dropped 61%, to $473mn. Last year Chile saw 242 transactions with total reported deal value registering at approximately $13.9bn, up 39.4%, according to TTR.
Export earnings from the current Chilean campaign fruit could fall by $100mn as a result of the coronavirus outbreak in China, according to exporter association Asoex. Port congestion, low demand and a shortage of store and delivery workers are taking toll on demand. Of the estimated 1,500 containers of cherries that remain in the market, just 249 were sold during the first 48 hours since wholesale markets reopened this week, said Asoex president Ronald Bown.
The board of Chile’s Central Bank decided to keep the interest rate at 1.75% and was concerned about the possible impact of lower consumption and fiscal expansion on the country’s economy. In the minutes of the meeting, board members also suggest closely following a possible weakening of the economy due to the coronavirus outbreak in China which has caused commodity prices, including copper.
“The Chacao Bridge is going to be built and will allow to extend our country by more than 200 kilometres, joining the continent with the wonderful island of Chiloé,” said the Chile president Sebastián Piñera during a visit to Puerto Montt. He acknowledged that there were discrepancies between the government and Hyundai, the firm that leads the consortium in charge of construction, but said the issue was resolved.