Cementos Españoles de Bombeo separates European, Mexican businesses

The company was advised by Mexican law firm Galicia, with a team led by tax partner Eduardo Michán E., with M&A partner Carlos Obregon, with Rodolfo Rovelo Betancourt, Ileana A. García Vargas and Santiago Chouciño Brindis, and which advised on the share sale transaction of Pumping Team SLU, a Spanish domiciled company and the majority owner of several subsidiaries in Spain and Portugal, by Pumping Team Holding to Pumping Holding, SL.

The transaction included an assessment of the base-case structure, under which the Mexican tax-domiciled entity would divest its interest in Pumping Team, and subsequently expanded to the analysis and structuring of alternative acquisition scenarios aimed at aligning the agreed commercial objectives.

As a core element of the advisory, Galicia's tax team analyzed the applicability of the Mexico-Spain double tax treaty and performed a detailed quantitative assessment of the economic implications of the proposed investment alternatives.

Galicia's participation also involved significant negotiations with the relevant parties and finalized with the review of framework agreements and corporate documentation required to implement the agreed divestment structure.

“This project was highly significant, as it marked the beginning of a new phase in the continuity of operations and future projects, for a group that is one of the leading players in the concrete market within the construction industry,” the law firm said.