"The Guatemalan Commercial Code contained in Congress’s Decree No. 2-70, as amended, contains no definition of a merger, and is limited to establishing the legal processes required to perform this procedure. Article 256 of the Commercial Code, (C.C.), recognizes two types of merger, namely: a) merger on its own: where one existing entity absorbs the other, and b) creation of an entity: a new entity is created by the dissolution of existing companies.
What is noteworthy is that merging is a procedure recognized by the law, which allows several companies to be united and thus pool their assets upon dissolution of the existing companies. Under Article 259 of the C. C. the decision to merge must be resolved by the relevant body of each of the companies in the form and terms that its method of registration determines, so that they can then proceed to register the merger in the Commercial Register, where notary titles are enough to provide the necessary record of the merger agreement by each society.
It is important to take into account the provisions in Article 260 of the C.C which refer to two months for the public registration to be performed, which aims to expedite the merging process. Another important factor to be aware of is that the merger could involve two different fiscal periods and therefore could affect planning for operations, administration and fiscal year-end activities. "
Source: prensalibre.com
More on this topic
January 2011
Grand Bay International acquired equity of Panamanian company Papelera Istmeña SA.
Without providing details of the negotiation, Javier Miró, manager of Papelera Istmeña SA (Papisa), said the alliance will meet company growth locally and regionally.
Prensa.com reports, "Part of the strategy is that Papisa will cover the Northern Central American market, while the operation in Guatemala is responsible for the southern part of the region."
November 2009
Harsco, a multinational company offering services for industrial companies, bought the regional company Esco.
The acquisition is in line with Harsco's expansion strategy in South America and the Caribbean.
"ESCO will be merged into Harsco Latin America", reports Sergio Morales for elfinancierocr.com. Tomás Dueñas, president and owner of Esco assured that "current infrastructure and staff will be maintained".
October 2009
The holding company comprising Avianca and Taca was fiscally registered in Bahamas.
Germán Efromovich, president of Grupo Sinergy, remarked that "Bahamas is the accounting registration of the holding, because it is favorable from a tax point of view".
"Both airlines are part of a holding of which Taca has a 33% share and Avianca 67%.
October 2009
Copa is now looking for new strategies, after its main competitor merged with the largest Colombian airline.
The merger of Avianca and Taca is a challenge not only for Copa, but also for Panama, remarked Pedro Heilborn, president of Copa Airlines. He added that Tocumen, Panama's main airport, has the required conditions to remain as the Central American Hub, joining Copa's efforts in the regional market.
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