CHILE: An Introduction to Corporate/M&A

Chile’s M&A Market in 2025: a Cautious Yet Sector-Driven Outlook

Chile’s mergers and acquisitions (M&A) landscape in 2025 is defined by moderation, selectivity and sectoral resilience. While transaction numbers and aggregate values are lower than in previous years, the market continues to offer targeted opportunities for inbound investors, particularly in industries that combine structural growth with global relevance: technology, renewable energy, infrastructure and agribusiness.

The first half of 2025 has unfolded against a backdrop of easing inflation, gradual interest rate reductions, and a regulatory environment undergoing meaningful – albeit measured – reform. For cross-border private equity sponsors and strategic corporates focused on large and mid-market transactions, Chile remains a jurisdiction where disciplined execution, robust due diligence and sector expertise are paramount.

Economic conditions are playing a decisive role in shaping market behaviour. Inflation eased from the highs of 2022–2023 to around 4.5% in 2024, and is projected to converge towards the Central Bank’s 3% target in 2025, enabling progressive interest rate cuts. GDP growth remains modest, reflecting structural challenges, while peso volatility persists, influenced by global capital flows and commodity demand – particularly from China, Chile’s largest trading partner. For clients, these conditions have translated into greater selectivity, longer negotiation timelines, and a heightened focus on risk allocation. For the legal profession, the result is increased demand for complex due diligence, regulatory navigation, and deal structuring expertise that can reconcile pricing expectations with execution certainty.

Market Performance: Moderation and Selectivity

According to the latest Transactional Track Record (TTR) data – M&A Market Chile, H1 2025 Report (July 2025) – 155 transactions were announced in Chile in the first six months of 2025: a 15% decrease in volume compared to the same period in 2024. Total disclosed value fell 56% to approximately USD2.98 billion. The first quarter saw 60 deals worth USD1.05 billion, down 34% in number and 67% in value from Q1 2024.

This follows 2024’s 367 transactions totalling USD13.27 billion, around 9% lower in both volume and value than in 2023. Private equity accounted for only three deals worth USD26 million in Q1 2025, while venture capital saw 13 transactions totalling USD74 million – sharp declines that reflect a shift towards measured capital deployment and a focus on high-conviction targets.

For inbound investors, this means fewer large-scale opportunities but a stronger emphasis on quality assets offering operational resilience, strong governance and credible growth trajectories.

Sectoral Opportunities

Technology and start-ups

Technology remains a consistent driver of deal flow. In 2024, TTR reported 112 start-up-related transactions, a notable share of overall activity despite modest aggregate values. The segment spans software-as-a-service (SaaS), fintech, logistics technology, and – increasingly – artificial intelligence applications.

Recent notable transactions include Visma’s acquisitions in HR and expense management, Accel-KKR’s investment to accelerate fintech growth, and other strategic moves by international players consolidating Chile’s SaaS and cloud-based platforms. Inbound investors often opt for structured minority positions or joint ventures, mitigating integration risk while establishing a foothold for regional expansion.

Infrastructure and data centres

Chile’s role as a Latin American hub for data connectivity and logistics is reinforced by stable energy supply and strong connectivity. Data centre investment is attracting global infrastructure funds and hyperscale cloud providers.

Recent reforms aimed at expediting permitting processes should positively impact on this segment, reducing execution risk and better aligning transaction timelines with financing requirements.

Renewable energy

Chile’s renewable energy sector, anchored in solar, wind and hydro resources, remains a regional leader in clean energy development. M&A activity typically involves acquisitions of operational portfolios, minority stakes in development pipelines, and joint ventures between international energy companies and local developers.

While transaction values have been tempered by interconnection bottlenecks and permitting delays, measures to shorten approval timelines are expected to support renewed activity. For inbound investors, these assets offer long-term stability and upside potential from emerging sectors such as green hydrogen.

Agribusiness and export-oriented industries

Chile’s agribusiness sector – from high-value fruit exports to aquaculture and wine – continues to attract international buyers seeking secure supply chains and established export channels. Cross-border deals often focus on downstream integration, including processing, logistics and technology platforms that enhance traceability and efficiency.

Many of these transactions fall within the mid-market range and involve control stakes in family-owned businesses, offering potential for operational improvements and ESG-aligned growth.

Regulatory Developments: Permitting, Compliance and Control

One of the most notable legal developments of 2025 is the enactment of permitting reform, designed to reduce approval times for infrastructure, energy and industrial projects by 30–70%. While reform of the Environmental Impact Assessment System (SEIA) is still pending, the changes already in place are expected to improve certainty for project-driven M&A.

The regulatory landscape for data and cybersecurity is also tightening. The Cybersecurity Framework Law, passed in 2024, and the new Data Protection Law, effective December 2026, introduce stricter requirements for incident reporting, governance and compliance. Buyers in technology, telecommunications and data-intensive industries now treat these as core elements of due diligence and integration planning.

Compliance considerations have expanded under the Economic Crimes Law (in force since 2023), which broadens corporate criminal liability. This has increased the scope and depth of pre-closing audits, particularly for inbound acquirers. The Fiscalía Nacional Económica (FNE) continues to enforce merger control rigorously, particularly in concentrated markets such as utilities, telecoms and logistics, making early regulatory engagement critical.

Structuring Trends in Inbound Transactions

Inbound investors face recurring challenges in the Chilean M&A market, including:

• macroeconomic volatility and peso fluctuations that can create valuation gaps;
• regulatory or environmental approvals that delay completion; and
• an expanded compliance landscape covering economic crime, cybersecurity and data protection.

To address these hurdles, the market has increasingly adopted flexible and protective structures:

• earn-outs, deferred consideration, and currency hedging are used to bridge pricing differences and manage exchange rate risk;
• escrow arrangements and hold-backs help cover post-closing environmental or compliance exposures; and
• warranty and indemnity (W&I) insurance is becoming more common, allowing parties to allocate risk efficiently and streamline post-closing recourse.

Staggered acquisitions and joint ventures remain popular in complex integrations, enabling phased capital deployment and alignment with regulatory milestones.

Practical Considerations for Cross-Border Investors

This environment calls for disciplined valuation, with sensitivity to exchange rate fluctuations and global capital costs. While permitting reform should improve timelines, sector-specific approvals and environmental assessments can still cause delays, especially in energy and infrastructure projects. Due diligence processes are expanding into cybersecurity, ESG compliance, and workforce matters.

Competition for high-quality assets remains strong despite the overall slowdown. Investors combining sector expertise with a well-prepared bid and flexible structuring are better positioned to secure premium targets.

Outlook: Sector Resilience as a Driver

The outlook for late 2025 is cautiously optimistic. Aggregate deal volumes and values are unlikely to match pre-2023 levels in the near-term, but the pipeline suggests potential momentum in digital infrastructure, renewable energy and agribusiness, supported by permitting reforms and sustained investor appetite for quality assets.

For inbound private equity and strategic corporates, Chile remains an attractive entry point into Latin America. The market’s resilience lies in its ability to offer sector-specific opportunities underpinned by strong fundamentals. In this environment, measured capital deployment, rigorous diligence and adaptive structuring are key to achieving sustainable returns.