Cross-Shareholdings And Interlocking

Law N° 20,945 (the "Law"), published on August 30, 2016, amended law decree number 211 (the "DL 211") which regulates anti-competitive practices in Chile. Two of the most significant changes that are introduced by the new antitrust law include defining the interlocking of directors and relevant executives as anticompetitive conduct, and the obligation to report the direct or indirect acquisition of more than 10% of a competitor.

1. Interlocking

The Law adds a new letter d) to the catalog of conducts in article 3 of DL 211, including as a new anticompetitive conduct the simultaneous participation of a person in relevant executive positions or as director in two or more companies that compete against each other, provided that the business group of each one of the companies has an annual income that exceeds approx. USD3.9 million during the last calendar year.