Merger of Chilean, Peruvian, and Colombian stock exchanges would generate 23% additional value

RIO DE JANEIRO, BRAZIL – The integration of the Chilean, Peruvian, and Colombian stock exchanges took a new step last week, with the merger’s approval by the shareholders of the Santiago Stock Exchange.

Yesterday, the Lima Stock Exchange (GBVL) shareholders approved the operation, and their peers in Colombia (BVC) are expected to do the same this week.

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The objective of the integration is to create a marketplace with a wide range of products and services, operating a single regional market with homogeneous rules and high standards.

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Credicorp Capital anticipates that the merger of the Andean exchanges “will attract more investors, issuers and increase the liquidity levels of assets traded on its platform.”

“If the integration objectives are achieved, additional shareholder value could be 23%, in the base case,” he noted.

The additional value comes from synergies. The extra gain would be 13% in the most conservative scenario, while the most optimistic scenario would be as high as 26%.

However, Credicorp warned that there would be challenges to overcome, such as obtaining the support of the authorities to standardize regulation or settlement in different currencies.

Integration “would help generate economies of scale and encourage greater volumes and market deepening. It would also be a great tool to address the threats that FinTech projects could pose to traditional financial businesses”.

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