Latin American Blog : Hispanic Latino Business Lawyers & Attorneys : Sheppard Mullin Law Firm : Cross Border Transactions, Government Contracts

By Donald Klawiter and Jennifer Driscoll-Chippendale

This article is the first in a three-part series on multi-jurisdictional cartel investigations. 

In a break from traditional enforcement trends, two recent events underscore the importance of antitrust compliance training for companies located or doing business in Mexico and Latin America. First, in November 2008, the European Commission announced that several cement companies, including Cemex, a global building materials company headquartered in Mexico, were under investigation for violating Article 81 of the EC Treaty, which prohibits cartel behavior. In May 2009, Mexico’s Federal Competition Commission joined the probe, wreaking further havoc on Cemex’s precarious financial position. Second, in February 2009, the Brazilian Ministry of Justice, in conjunction with the U.S. Department of Justice and the European Commission, took the lead in an antitrust investigation of compressor makers, including Empresa Brasileria de Compressores S.A.-Embraco and Tecumseh do Brasil Ltda. The scope of the Brazilian inquiry was unprecedented, with nearly 60 federal police agents, Justice ministry officials and state prosecutors working to serve six search warrants in Sao Paolo and Santa Catarina and gather evidence of wrongdoing.  
 

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By Bram Hanono

In July 2007, President Felipe Calderon launched the National Infrastructure Program ("NIP") to increase coverage, quality, and competitiveness of Mexico's infrastructure. Through infrastructure investment, Mexico is seeking to advance its regional and global standing. The NIP, slated for 2007 through 2012, calls for approximately US$230 billion, comprised of federal and private investment, to finance 480 infrastructure projects. About half way through its duration, there are still ample procurement opportunities for U.S. Companies.  
 

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By Robert Magielnicki

There are three laws which a foreign company contemplating an acquisition of a United States corporation or other business should be familiar with because they can have a significant impact upon the proposed acquisition. These statutes are:

(1)   Section 7 of the Clayton Act;

(2)   The Hart-Scott-Rodino Antitrust Improvements Act of 1976, and

(3)   The Exon-Florio Amendment to the Defense Production Act of 1950.
 

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By Bram Hanono

The U.S. Food and Drug Administration (FDA) recently announced the opening of its new post in Mexico City. The new post is the FDA's third post in Latin America and the tenth international post the FDA has opened in the past 13 months. The other posts in Latin America are located in Santiago, Chile and at the FDA's Latin America Office headquarters in San Jose, Costa Rica. The agency's other new offices are in China, India and Europe.
 

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