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US Firm Withdraws Chilean Ski Resort Bid Amid Antitrust Scrutiny
🇵🇾 Paraguay /Economy & Trade

US Firm Withdraws Chilean Ski Resort Bid Amid Antitrust Scrutiny

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News From a news agency Outcome reported
  • U.S. investment fund Mountain Capital Partners has withdrawn its offer to purchase Chilean ski company Andacor following concerns from the National Economic Prosecutor's Office (FNE) about potential market monopolization.
  • The acquisition would have given Mountain Capital Partners control over four of the central region's five most important mountain resorts, raising fears of price increases and service quality decline.
  • The FNE determined that the deal would have negatively impacted ski resort quality and prices due to a lack of direct competition, recommending the sale of some centers to a third party, which Mountain Capital Partners deemed incompatible with its investment goals.

Mountain Capital Partners, a U.S. investment fund specializing in ski and winter sports, has withdrawn its bid to acquire the Chilean company Andacor. The decision follows significant reservations from Chile's National Economic Prosecutor's Office (FNE) regarding the potential for monopolization in the ski resort market.

The proposed acquisition aimed to consolidate control over key ski infrastructure in Chile's central region. Mountain Capital Partners, already operating Valle Nevado and La Parva, sought to add El Colorado and Farellones through Andacor. This move would have placed over 2,606 hectares of skiable terrain under their control, making it one of the world's largest winter sports complexes and giving them dominance over four of the five major resorts in the area.

The FNE closely monitored the transaction, identifying risks such as potential price hikes, reduced service quality, and diminished competitiveness due to market concentration. The prosecutor's office concluded that the deal would harm consumers and recommended that Mountain Capital Partners divest some of the resorts to a third party to maintain competition. Mountain Capital Partners stated that such measures were incompatible with their investment objectives and their vision of creating a large, accessible mountain destination, leading to the voluntary withdrawal of the operation.

DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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