The Superintendence of Industry and Commerce (“SIC”) updated the merger review reporting thresholds applicable as of January 1, 2021. According to Resolution 77896 of 2020, issued by SIC, for 2021 any merger between companies, with horizontal or vertical overlaps, must be reported if any of the following thresholds are met:
- The turnover of the companies in 2020, jointly or independently, was equal to 60.000 times the Minimum Monthly Wage; or
- The assets of the companies had joint or independent a value in 2020 equal to 60.000 times the Minimum Monthly Wage.
The 2021 thresholds remain the same as in 2020.
Please note, that the Minimum Monthly Wage for 2021 has been set at COL$908.526 (about US$263). Hence, in 2021 any merger, whether horizontal or vertical, must be reported to SIC when the companies involved meet either of the following thresholds:
- Their joint or individual 2020 turnover exceeds COL$54.511.560.000 (about US$15.800.000); or
- Their joint or individual assets in 2020 exceeded COL$54.511.560.000 (about US$15.800.000).
Failure to report a merger meeting the aforementioned thresholds exposes parties to fines. For companies, the fines may reach 100.000 times the value of the Minimum Monthly Wage or 150% of the profits gained through the unreported transaction. For individuals, fines can reach up to 2.000 the Minimum Monthly Wage. Furthermore, the law also grants SIC the power to order the reversal of the unreported merger if it finds that the transaction poses a significant restriction to competition.
Should you require additional information please do not hesitate to contact us.