{"id":136640,"date":"2026-04-08T11:29:11","date_gmt":"2026-04-08T11:29:11","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=136640"},"modified":"2026-04-09T15:40:48","modified_gmt":"2026-04-09T15:40:48","slug":"paraguay-mergers-acquisitions","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/paraguay-mergers-acquisitions\/","title":{"rendered":"Paraguay: Mergers &amp; Acquisitions"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-136640","comparative_guide","type-comparative_guide","status-publish","hentry","guides-mergers-acquisitions","jurisdictions-paraguay"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">BKM | Berkemeyer<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/03\/Logo-BKM-bloque_Con-fondo-blanco.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">BKM | Berkemeyer<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/03\/Logo-BKM-bloque_Con-fondo-blanco.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Mergers &amp; Acquisitions laws and regulations applicable in Paraguay<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key rules\/laws relevant to M&A and who are the key regulatory authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Paraguay&#8217;s M&amp;A landscape is regulated by a comprehensive legal framework, anchored in the Paraguayan Civil and Commercial Code, which establishes fundamental contractual and transactional principles. Key legislation includes Law No. 1034\/83 (Sole Proprietorship Law), Law No. 1183\/85 (Civil Code), Law 6380\/19 (Tax Reform Law, establishing Paraguay&#8217;s competitive &#8220;10-10-10&#8221; tax system: 10% Corporate Income Tax, 10% VAT, and 10% Personal Income Tax), and Law 438\/94 (Companies Law). For publicly traded entities, the new Capital Markets and Products Law (Law 7572\/2025) concerning public securities offerings, their issuers, and the securities market registry, becomes paramount. Investment funds and their managing entities are also governed under this unified framework, which replaced Law 5810\/17 and Law 5452\/15. Additionally, Paraguay&#8217;s 2025 legislative reforms introduced a comprehensive suite of fiscal incentive laws that significantly impact M&amp;A structuring, including Law 7548\/2025 (New Fiscal Incentives Regime, replacing the historic Law 60\/90), Law 7547\/2025 (Modernized Maquila Regime), and Law 7546\/2025 (Technology Equipment Production Regime). These laws create the base of the legal framework for any M&amp;A transaction.<\/p>\n<p>Beyond these core statutes, regulatory oversight is provided by several key authorities. The Abogac\u00eda del Tesoro plays a vital role in ensuring legal compliance, while the Comisi\u00f3n Nacional de la Competencia (CONACOM), Paraguay&#8217;s antitrust authority, safeguards fair market practices, performs merger control and prevents anti-competitive behavior. In May 2025, CONACOM approved a new Instruction for Merger Notifications (effective September 1, 2025) introducing ordinary and simplified forms to streamline the notification process. Crucially, Law 7162\/23 established the Superintendencia de Valores (SIV), replacing the National Securities Commission, as the regulatory, supervisory, and oversight authority for the securities market, operating under the Central Bank of Paraguay (BCP). The SIV, in exercising its powers, has issued regulations to implement these provisions, ensuring compliance with Law 7572\/2025 and related securities market legislation. Additionally, the Ministry of Finance launched the Sistema Integrado de Administraci\u00f3n de los Registros Administrativos (SIARA) in March 2026, which has become the exclusive digital platform for all corporate registry filings with the Administrative Registry of Legal Entities and Beneficial Owners. SIARA mandates the use of qualified electronic signatures and requires legal representatives to maintain electronic identity profiles, representing a fundamental shift in corporate governance compliance for Sociedades An\u00f3nimas (S.A.) and Sociedades de Responsabilidad Limitada (S.R.L.).<\/p>\n<p>Furthermore, a wide range of regulations must be considered for domestic M&amp;A transactions. Antitrust approval from CONACOM is increasingly significant for relevant transactions requiring merger authorization, with the new two-track notification system streamlining low-risk deals while retaining rigorous review for complex transactions. Sector-specific regulations are critical, particularly in industries like banking, insurance, telecommunications, and gambling, where additional prior approvals from relevant governmental bodies are necessary. Environmental authority approval from the Ministry of Environment and Sustainable Development (MADES) is also mandatory for industrial and specific activities, necessitating environmental permissions and notifications during asset or share purchases. Additionally, the 2025 legislative reforms introduced comprehensive frameworks for carbon credits (Law 7190\/23 and Decree 3369\/25), establishing MADES as the oversight authority for carbon market projects with clear registry and validation procedures. These entities and regulations are essential for maintaining a transparent, competitive, and legally compliant M&amp;A environment in Paraguay.<\/p>\n<p>From a tax perspective, Paraguay&#8217;s 2025 legislative package provides strategic advantages that significantly impact M&amp;A deal structuring. The New Fiscal Incentives Regime (Law 7548\/2025), which replaced the historic Law 60\/90, offers a 20-year exemption framework including: customs duties and VAT exemptions on imports and local purchases of capital goods and productive inputs; for investments exceeding USD 13 million, exemption from Non-Resident Income Tax (INR) on interest from external financing and exemption from Tax on Dividends and Profits (IDU) on project-generated dividends; and tailored incentives for tourism and entertainment projects exceeding USD 20 million. The modernized Maquila Regime (Law 7547\/2025) maintains a competitive 1% Single Tax on the greater of national value added or export invoice value, with duty-free temporary admission of inputs and equipment, VAT refund rights for exporters, and IDU exemption on maquila-derived profits. These fiscal tools enable acquirers to optimize capital structures and improve internal rates of return on high-capex transactions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the current state of the market?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Paraguay&#8217;s M&amp;A market has reached a definitive inflection point in 2026, transitioning from a frontier market to a structurally mature investment destination within the Southern Cone. This transformation is the result of a deliberate, multi-year &#8220;Reform Supercycle&#8221; that culminated in 2025 with the attainment of sovereign Investment Grade status from both Moody&#8217;s (Baa3 in July 2024) and Standard &amp; Poor&#8217;s (BBB- with stable outlook in December 2025). The sovereign upgrade has compressed the country&#8217;s risk premium, lowering the cost of capital for corporate borrowers and increasing the net present value of long-term asset cash flows. The market is shifting from family-owned conglomerates consolidating local positions to global strategic players integrating Paraguayan assets into transnational value chains. This influx of &#8220;patient capital&#8221; from institutional investors-such as pension funds, insurance companies, and sovereign wealth funds-is expected to deepen local capital markets and reduce reliance on dollarized debt. Entering 2026, Paraguay&#8217;s macroeconomic fundamentals remain among the most robust in the hemisphere, with real GDP growth projected between 3.7% and 4.0%, inflation anchored at 3.5%, and fiscal deficit targeted at 1.5% of GDP.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which market sectors have been particularly active recently?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Paraguay&#8217;s M&amp;A landscape is vibrant, driven by robust activity in core sectors like agribusiness, infrastructure, and energy, with a notable surge in the financial services sector. First, the attainment of investment-grade status from both Moody&#8217;s (Baa3 in July 2024) and Standard &amp; Poor&#8217;s (BBB- with stable outlook in December 2025) has fundamentally bolstered investor confidence, achieving the &#8220;double investment grade&#8221; threshold required by major institutional funds for large-scale capital allocation. Second, the rapid modernization of the financial sector, fueled by digital transformation and the rise of fintech, is a key driver of M&amp;A. This is exemplified by recent mergers between banks and acquisitions of digital wallets and fintech startups, demonstrating a clear trend toward consolidation and technological advancement. The new Capital Markets and Products Law (Law 7572\/2025) further facilitates sophisticated financing structures, including DLT-enabled instruments.<\/p>\n<p>Furthermore, the Industrialization of Agribusiness is being accelerated by the ratification of the EU-Mercosur Agreement (signed January 17, 2026), driving the shift from raw commodity export to industrial processing. Global protein majors like JBS are acquiring Paraguayan assets, with the focus on vertical integration and the &#8220;crush spread&#8221;-using low-cost local soy and corn to feed livestock for export. AgriTech M&amp;A is also growing as input distributors acquire startups offering precision agriculture and AI solutions. Fourth, Forestry and Carbon assets are attracting institutional capital at unprecedented rates, driven by the Carbon Credits Law and the National Digital Registry of Carbon Credits. Investors are acquiring degraded land for conversion to eucalyptus plantations or silvopastoral systems, with valuations incorporating carbon credit streams alongside timber sales and land appreciation. In addition, Paraguay has become an attractive destination for cyprto-related \/ Tier I data centers M&amp;A activity due to its abundant access to renewable energy, primarily from hydroelectric sources. As a result, global crypto companies are increasingly pursuing acquisitions and strategic partnerships in Paraguay to secure energy capacity and scale their operations efficiently in a sustainable way.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What do you believe will be the three most significant factors influencing M&A activity over the next 2 years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Looking ahead, four primary factors are poised to significantly influence Paraguay&#8217;s M&amp;A landscape over the next two years. First, the Regulatory &#8220;Reform Supercycle&#8221; will continue to shape deal-making, particularly through Law 7572\/2025 (Securities and Products Market Law), which enables cleaner &#8220;Take-Private&#8221; deals through minority squeeze-out provisions and dematerialized shares. Second, the evolution of antitrust enforcement by CONACOM, which has matured into a rigorous enforcer with strict stances against &#8220;anticipatory conduct&#8221; and sophisticated market definitions that consider digital ecosystems, will impact consolidation strategies. Third, the geopolitical positioning of Paraguay, maintaining relations with Taiwan while deepening ties with the U.S. (evidenced by $250 million in DFC loans to local banks) and the EU (through the Mercosur agreement), creates a &#8220;multipolar&#8221; safety net for investors. Lastly, the convergence of traditional industries with new technologies-energy with AI, agriculture with biotech, and banking with fintech-will determine the most valuable transactions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key means of effecting the acquisition of a publicly traded company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The acquisition of shares of publicly traded companies in Paraguay is facilitated through public tender offers (PTOs), which are subject to rigorous regulatory oversight by the Superintendencia de Valores (SIV). Law 7572\/2025 has modernized these mechanisms significantly, mandating that Open Capital Corporations (SAECAs) record shares in book-entry form (dematerialized shares) via securities clearinghouses. This enables &#8220;Delivery-versus-Payment&#8221; (DvP) settlements and eliminates friction in closing mechanics. Additionally, the law establishes clear squeeze-out provisions for minority investor protection, facilitating cleaner &#8220;Take-Private&#8221; transactions. Share purchase agreements and mergers and consolidations continue to serve as viable mechanisms for acquiring control. Digital assets and tokenization are now explicitly within the regulatory perimeter, providing legal certainty for fintech M&amp;A.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What information relating to a target company is publicly available and to what extent is a target company obliged to disclose diligence related information to a potential acquirer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Information pertaining to publicly traded target companies-such as financial statements, corporate documents, and regulatory filings-are available via the Superintendencia de Valores (SIV). While target companies are obligated to disclose material information, the extent of due diligence-related information provided can vary. Non-disclosure agreements are commonly employed to safeguard sensitive data during the due diligence process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what level of detail is due diligence customarily undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Due diligence in Paraguayan M&amp;A transactions has expanded significantly in scope for 2026. Beyond comprehensive financial, legal, tax, and operational analysis, new priority areas include: ESG and Carbon compliance, with &#8220;Deforestation Audits&#8221; critical for agribusiness deals to ensure compliance with the EU Deforestation Regulation (EUDR); Data Privacy due diligence under Law 7593\/2025, which is in a transition phase and will be in force in a couple of years imposes GDPR-style fines and compliance standards, making scrutiny of consent management platforms and data security protocols essential; and Fiscal Incentives Compliance, verifying &#8220;Good Standing&#8221; of benefits under the repealed Law 60\/90 to avoid tax clawbacks, while assessing transition risks under the new Law 7548\/2025 regime. The level of detail pursued is contingent upon the size and complexity of the transaction, but the era of simple due diligence is over.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key decision-making bodies within a target company and what approval rights do shareholders have?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The board of directors serves as the primary decision-making body within target companies. However, shareholders retain approval rights for significant transactions, such as mergers, acquisitions, and substantial asset sales, especially those affecting the company&#8217;s bylaws. Shareholder meetings are therefore critical forums for securing necessary approvals. Although the above constitutes the general rule, the bylaws of each company need to be analyzed in detail to determine if the operation requires shareholder approval or if the board of directors is sufficiently empowered for such purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the duties of the directors and controlling shareholders of a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Directors of Paraguayan companies are bound by fiduciary duties, including the duty of loyalty and the duty of care. Similarly, controlling shareholders are expected to act in the best interests of the company. These obligations promote responsible corporate governance and protect stakeholders&#8217; interests.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do employees\/other stakeholders have any specific approval, consultation or other rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employees in Paraguay possess rights governed by labor laws, including provisions related to severance and the transfer of employment. While other stakeholders may have contractual rights, broad stakeholder approval rights beyond labor law are generally limited. It is important to acknowledge that employee rights are protected by the labor code<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what degree is conditionality an accepted market feature on acquisitions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Conditionality is a standard feature in Paraguayan acquisition agreements, reflecting the need to address various contingencies. Conditions often include obtaining regulatory approvals (including CONACOM antitrust clearance where applicable), satisfactory due diligence results, and securing necessary financing. With the 2025 regulatory reforms, conditions may also address compliance with the new investment incentives regime (Law 7548\/2025) and environmental permits from MADES, particularly for agribusiness and forestry transactions. This approach allows parties to mitigate risks and ensure that transactions proceed only when key criteria are met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps can an acquirer of a target company take to secure deal exclusivity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To secure deal exclusivity, acquirers in Paraguay commonly employ exclusivity agreements, also known as lock-up agreements. These agreements prevent the target company from engaging in negotiations with other potential buyers for a specified period, providing the acquirer with a window of opportunity to finalize the transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other deal protection and costs coverage mechanisms are most frequently used by acquirers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Acquirers in Paraguay utilize various deal protection mechanisms, including break-up fees and non-solicitation agreements. Break-up fees provide compensation to the acquirer if the target company terminates the agreement, while non-solicitation agreements restrict the target company from actively seeking alternative offers<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which forms of consideration are most commonly used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cash remains the most prevalent form of consideration in Paraguayan M&amp;A transactions. The new Capital Markets and Products Law (Law 7572\/2025) has introduced recognition of distributed ledger technology (DLT) for securities, which may facilitate new forms of consideration in the future. The choice of consideration often depends on the specific circumstances of the deal and the preferences of the parties involved.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">At what ownership levels by an acquirer is public disclosure required (whether acquiring a target company as a whole or a minority stake)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The SIV establishes disclosure thresholds for publicly traded companies, mandating public disclosure when an acquirer reaches specific ownership levels. These rules are designed to enhance market transparency and provide investors with timely information regarding significant ownership changes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">At what stage of negotiation is public disclosure required or customary?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Public disclosure is typically required when a material agreement is reached or when a tender offer is launched. This ensures that relevant information is disseminated to the market in a timely and transparent manner, enabling investors to make informed decisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any maximum time period for negotiations or due diligence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Paraguayan law does not stipulate a statutory maximum time period for negotiations or due diligence. However, parties typically agree on specific time frames within their transaction agreements, ensuring that the process progresses efficiently.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any maximum time period between announcement of a transaction and completion of a transaction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Similar to negotiations and due diligence, there is no statutory maximum time period between the announcement and completion of a transaction. Regulatory approvals and other factors can influence the timeline, which is typically outlined in the transaction agreements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any circumstances where a minimum price may be set for the shares in a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the context of tender offers, the SIV may establish rules pertaining to fair pricing, potentially setting minimum price requirements to protect shareholder interests. This ensures that shareholders receive equitable value for their shares. In other cases, not related to public companies, fair market value is expected for the transactions, and thus, there is a presumption that a company that is profitable cannot be sold for a price lower than the value of its face share value.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible for target companies to provide financial assistance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Restrictions exist regarding target companies providing financial assistance, primarily to safeguard the interests of creditors and minority shareholders. These restrictions aim to prevent companies from jeopardizing their financial stability to facilitate acquisitions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which governing law is customarily used on acquisitions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Paraguayan law typically governs domestic M&amp;A transactions. While parties may agree on a foreign governing law for international transactions, Paraguayan law will invariably apply to certain aspects of the operation, particularly those related to corporate governance and regulatory compliance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What public-facing documentation must a buyer produce in connection with the acquisition of a listed company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Acquirers of listed companies in Paraguay must produce various public-facing documents, including tender offer documents, disclosures of material information, and financial statements. These documents provide transparency and ensure that investors have access to essential information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required in order to document a transfer of shares, including any local transfer taxes or duties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Share transfers in Paraguay require adherence to specific formalities, including the execution of share transfer agreements and registration with relevant authorities. For Open Capital Corporations (SAECAs) under Law 7572\/2025, shares must now be recorded in book-entry form (dematerialized shares) via securities clearinghouses, enabling &#8220;Delivery-versus-Payment&#8221; (DvP) settlements and eliminating friction in closing mechanics. Critically, as of March 2026, corporate registry communications-including those related to information on the Legal Entity and Ultimate Beneficial Owners must be filed exclusively through the SIARA platform using qualified electronic signatures; non-compliance may result in fines and operational blockages affecting the company&#8217;s legal standing, tax, and banking obligations. Potential transfer taxes may also apply, depending on the structure of the operation. These formalities ensure legal validity and proper record-keeping.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are hostile acquisitions a common feature?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Hostile acquisitions are relatively uncommon in Paraguay, primarily due to the nature of Paraguayan corporate law and the prevalence of closely-held corporate structures. However, the new Capital Markets and Products Law (Law 7572\/2025) has strengthened minority shareholder protections and corporate governance standards, which may influence future acquisition dynamics.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do directors of a target company have against a hostile approach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Directors of target companies can rely on their fiduciary duties to protect the company&#8217;s interests in the face of a hostile approach. While &#8220;poison pill&#8221; defenses may be used, they are not prevalent. The directors&#8217; duty to the company is the primary protection. Under the new Capital Markets and Products Law (Law 7572\/2025), enhanced disclosure requirements and strengthened minority shareholder rights provide additional layers of governance that may deter opportunistic hostile approaches.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there circumstances where a buyer may have to make a mandatory or compulsory offer for a target company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mandatory offers may be triggered when an acquirer reaches a certain ownership threshold in a publicly traded company. These offers are designed to provide minority shareholders with an opportunity to exit their positions under equitable terms. This might also occur within the framework of negotiated shareholders agreements, whereby a specific event, could trigger mandatory offer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If an acquirer does not obtain full control of a target company, what rights do minority shareholders enjoy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Minority shareholders in Paraguay enjoy various rights, including the right to dividends, voting rights, and the right to challenge corporate actions. These rights are intended to protect their interests and ensure fair treatment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a mechanism available to compulsorily acquire minority stakes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mechanisms to compulsorily acquire minority stakes exist in Paraguay, often referred to as &#8220;squeeze-out&#8221; provisions. Law 7572\/2025 has significantly modernized this area by establishing clear mechanisms for minority investor protection and squeeze-out rights. This is a game-changer for &#8220;Take-Private&#8221; M&amp;A transactions, as strategic acquirers previously struggled to reach 100% ownership due to passive minority shareholders. The new framework allows for cleaner exits and consolidations, though these actions remain subject to close scrutiny and must ensure fair valuation of minority shares and adherence to strict procedural requirements. The emphasis on safeguarding minority shareholder interests within the Paraguayan legal framework remains paramount.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3233<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/136640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=136640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}