Business

SPACs are back – with a Latin American twist

Special purpose acquisition companies are all the rage in the U.S., and sponsors are now beginning to eye up Latin American firms for mergers and acquisitions

invest in latin america spacs
Photo: Peshkova/Shutterstock

There is a curious convergence between financial markets and the fashion industry. Like seasonal clothing collections, trends in finance come and go and every now again old styles come back in vogue, with modern twists. In the U.S., the flavor of the month in 2020 was the so-called special purpose acquisition companies, or SPACs. And this season, they are all the rage once more, with added Latin American flair.

SPACs are publicly-listed companies created with the sole purpose of acquiring other firms and bringing them into the market. Thus, they are often known as “blank check companies.” SPACs begin life...

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