Baker & McKenzie has extended its increasing strategic focus on Latin America by becoming the first international law firm to establish in Peru.
The firm announced a new partnership with Estudio Echecopar, a leading Lima-based firm, in October. It is one of the largest firms in Peru, with over 200 staff, and is ranked in the top tier in the current issue of The Legal 500 Latin America for corporate, M&A, disputes, projects and banking and finance.
Koen Vanhaerents, EMEA chair for Bakers, said that the move was part of a broader strategy than launching in one particular country. ‘We have mapped out our new frontiers and we are focusing on Latin America,’ he said.
He added that opening in Peru would not have made strategic sense without having other offices in the region. Bakers also has a presence in Colombia and Chile, which together with Peru form the so-called ‘Andean Three’. The three countries merged stock markets in 2011, creating the second-largest exchange in Latin America after Brazil and the countries are all predicted to grow faster than Brazil and Mexico over the next five years.
Lima will be Bakers’ fifteenth office in the region and the draw of the country becomes clear when considering recent economic development.
‘We don’t see this as an acquisition, they joined our firm as partners.’
Koen Vanhaerents,
Baker & McKenzie
Peru’s GDP expanded 6% in the first quarter of 2012 and has an annual growth rate of 3.5%. It has become an attractive destination for foreign investment and signed free trade agreements with the European Union and South Korea in 2011. Significant growth in interest from companies in the Asia-Pacific region, combined with the wealth of natural resources that Peru has to offer were undoubtedly major influencing factors behind Bakers’ decision to open there.
Although Bakers has enjoyed an unofficial partnership with Estudio Echecopar before, the deal was not a snap decision and talks began well over a year ago. However, according to Vanhaerents, it quickly became clear that the chemistry between Bakers and Estudio Echecopar would ensure a great fit.
Vanhaerents was also keen to point out that this wasn’t an acquisition. ‘We don’t see this as an acquisition, they joined our firm as partners,’ he said. ‘This is not a buyout – we don’t go in waving a big pay cheque saying “this is what we pay you to join”.’
‘Our strategy in Peru, Latin America and around the world has been, and continues to be, the efficient pairing of our legal talent and services with the needs and demands of our global, regional and local clients. That’s why we continue to build our global platform for the long term in new markets and through strategic lateral hiring,’ he added.
The firms seem to have complementary practices. ‘Energy, mining and infrastructure are areas that we both share strengths, that’s where we see the bigger projects coming in Peru and that’s also where Estudio Echecopar has quite some capabilities,’ said Vanhaerents.
In addition, Bakers will provide employment work, trade mark protection, IT and general commercial advice on setting up distribution structures, including the supply chain.