The start of the merger and consolidation process of the operations between Banco Atlas and Banco Familiar has been recently announced. This process began with the signing of certain key agreements that established the bases of the transaction, which also involves the subsidiaries Atlas SA de Seguros, Atlas Casa de Bolsa SA, and Atlas Administradora de Fondos Patrimoniales de Inversión SA, on the one hand; and Familiar Seguros SA, Familiar Casa de Bolsa SA, and Familiar Administradora de Fondos Patrimoniales de Inversión SA, on the other.
This merger constitutes the largest and most important M&A transaction of 2024 in Paraguay, which will give rise to the new Banco Atlas Familiar, consolidating it as one of the largest banks in the market. The new bank will have total assets exceeding USD 2.7 billion, a net worth of USD 320 million, and an active portfolio of USD 1.92 billion. The transaction, which marks a historic and significant milestone for the market in general, is subject to the approval of the regulatory authorities.
Vouga Abogados advised Banco Atlas SA, Atlas SA de Seguros, Atlas Casa de Bolsa SA, and Atlas Administradora de Fondos Patrimoniales de Inversión SA and their shareholders in the structuring of this innovative transaction, covering areas such as banking, capital markets, insurance, corporate, transactional, regulatory, tax, and antitrust law, among others. Our advice also included the drafting and negotiation of the transaction agreements, as well as the planning of the subsequent steps in this process.
The transaction, of great magnitude and complexity, involves a quadruple merger, at different levels, including the merger of 2 banks, the merger of 2 insurance companies, 2 brokerage firms and 2 pension fund managers. Closing the transaction will require the fulfillment of certain conditions until closing and obtaining approvals from various regulators. Unlike other precedents in the market in which financial entities were absorbed (without creating a new entity per se), this transaction marks a milestone since it involves the creation of a new entity.
The Vouga team that has advised on this first stage of the transaction is led by partners Rodolfo G. Vouga Zuccolillo and Cynthia Fatecha, together with senior associates Cecilia Vera, Andrés Vera and Horacio Sánchez. We look forward to involving more associates from the firm in the next stages of this momentous transaction. Jorge Vera has participated as in-house counsel for Banco Atlas, and the Fiorio, Cardozo & Alvarado Law Firm team, consisting of Juan Bautista Fiorio, Bruno Fiorio and Jean Saavedra, has represented Banco Familiar and its subsidiaries.
