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the real world r unsure/uncertain, better to use pessimistic or more conservative or base case is better in M&A decisions

Under the M&A principle -> chile is better for m&a

*its a strategy that focuses on anticipating worst-case scenarios and ensuring the deal's robustness, even in the face of unfavorable conditions

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Rationale on Chile Strength and Brazil Weaknesses

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Rationale on Chile Strength and Brazil Weaknesses

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Chile: HIGHER VALUATION -> Better ROI

Chile -> Open trade policies, stable econ and politics (a good politics climate compare to brazil)

Brazil: Currency volatility -> uncertain, finance risk risen

Brazil: Politics: too unpredictable, does not really shows a good governance

Even tho brazil has a bigger market, but scale means nothin if the money we invest loses vaklue due to inflation and corruption risk. Chile give us the oppurtunity to grow safer. Brazil carries too many risks that reduce our valuation. If we want to grow profitably and sustainably, Chile is the better option

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Optimistic Scenario:

Chile: Strong performance and high PV

Brazil: weak performance, ga attractive

Pessimistic Scenario:

Chile still maintains good value, resilience: even in wors case

Brazil becomes risky

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1. Trade Agreement Advantage

Chile has signed more Free Trade Agreements (FTAs) than almost any other country in Latin America — including with the EU, US, China, and CPTPP.

This means lower tariffs, easier cross-border operations, and greater global access for a post-M&A entity.

2. Digital and Tech Infrastructure

Chile has superior digital connectivity and infrastructure, with higher internet penetration, better cybersecurity frameworks, and active government support for digital transformation.

Brazil is improving but still lags in digital access and rural internet coverage.

3. M&A Track Record and Regulatory Clarity

Chile has a cleaner history of successful foreign M&A with relatively clear rules and procedures.

Brazil’s antitrust authority (CADE) can be slower and less predictable, with risk of delays or rejections in merger approvals.

4. Energy Reliability and Costs

Chile has heavily invested in renewables, leading to more stable and lower-cost energy in the medium term.

Brazil is still vulnerable to hydropower shortages and energy rationing, affecting industrial operations

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The real world are unsure/uncertain, better to use pessimistic or more conservative or base case is better in M&A decisions

Under the M&A principle -> chile is better for m&a

*its a strategy that focuses on anticipating worst-case scenarios and ensuring the deal's robustness, even in the face of unfavorable conditions

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Higher Valuation:

Chile’s average EV/EBITDA multiples in key sectors: 7–9×, vs. Brazil’s 5–7×

→ Indicates greater investor confidence and better ROI

Stable Economy:

Inflation rate: ~3% (Chile) vs. ~4.5–6% (Brazil)

GDP growth (2024 est.): 2.5% Chile, 1.5% Brazil

Politics & Governance:

Chile ranks #1 in Latin America on the Economic Freedom Index

Corruption Perception Index (CPI) score: 67 (Chile) vs. 38 (Brazil)

→ More predictable and transparent environment

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1) Individualism and collectivism. Higher the index stronger is individualism - Namlana

2)

Power distance -

Surayaa

3)

Uncertainty

avoidance - My Uuyen

4)

Male and female culture. Higher the index, stronger the masculinity -

Akdana

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Power Distance. Brazil &

Chile

High PDI scores indicate a society that accepts a large power difference, while low PDI scores suggest a society that expects greater equality between people

﻿﻿1. South Korea

﻿﻿Power Distance Index: 60

﻿﻿Explanation:
South Korea has a
moderately high power distance, meaning that hierarchical structures are respected, and authority is rarely questioned. There's a strong emphasis on age, rank, and seniority, especially in business and social settings. Subordinates tend to expect clear direction and are not likely to openly challenge leadership.

﻿﻿2. Brazil

﻿﻿Power Distance Index: 69

﻿﻿Explanation:
Brazil has a high power distance, which reflects a strong acceptance of unequal power distribution in society and organizations.
people tend to accept authority and centralized decision-making. Titles and formalities matter, and managers are expected to lead firmly. However, relationships are often more warm and personal compared to Korea.

﻿﻿3. Chile

﻿﻿Power Distance Index: 63

﻿﻿Explanation:
Chile also has a high power distance, but slightly less pronounced than Brazil.
Chileans generally respect authority, but there is also a growing expectation of participation and collaboration, especially among younger professionals. While hierarchical, there is an increasing shift toward more open communication in modern organizations.

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Individualism vs.
Collectivism. Conclusion:
Chile has stronger cultural alignment with Korea (higher the score-stronger individualism)

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Individualism vs.
Collectivism. Conclusion:
Chile has stronger cultural alignment with Korea (higher the score-stronger individualism)

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Korea: Collectivist

﻿﻿Hofstede score: 18

﻿﻿Strong sense of loyalty to the company and team

﻿﻿Emphasis on hierarchy, teamwork, and saving face

﻿﻿Employees expect decisions to be made by leaders

﻿﻿Group harmony is more important than expressing personal opinions

Brazil: More Individualistic

﻿﻿Hofstede score: 38

﻿﻿Brazilians value personal relationships but also assert individual expression

﻿﻿Employees might challenge leadership or seek personal recognition

﻿﻿There is less formality and more flexible boundaries in roles and communication

﻿﻿M&A implication: Risk of conflict when introducing top-down
Korean leadership

﻿﻿Chile: Moderate Collectivism

﻿﻿Hofstede score: 23

﻿﻿More similar to Korea in terms of hierarchy and group loyalty

﻿﻿Emplovees are used to structured authority and respectful communication

﻿﻿More adaptable to Korean leadership styles and
consensus-driven processes

﻿﻿M&A implication: Lower risk of resistance in management integration

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Uncertainty Avoidance (UA)

https://clearlycultural.com/geert-hofstede-cultural-dimensions/uncertainty-avoidance-index/

Comparison & Implications for M&A

Korea vs. Brazil

Both cultures show high uncertainty avoidance, but Brazil is slightly more flexible than Korea.

Brazilian businesspeople may expect formal procedures, but could still tolerate some ambiguity and adjust with personal relationships and improvisation.

For Anam, cultural alignment in this area is relatively strong, but communication styles may differ – Brazilians may rely more on informal networks despite the formal environment.

Korea vs. Chile

Chile’s UA index is almost identical to Korea’s, meaning both cultures strongly prefer risk minimization, detailed planning, and rule-based processes.

This similarity could lead to smoother collaboration in post-merger integration: similar expectations for compliance, documentation, and careful planning.

Chilean partners may be more compatible with Korean style of corporate governance and risk management.

Conclusion for M&A

Chile may offer a better cultural match with Korea in terms of uncertainty avoidance. This can lead to less conflict, more predictable collaboration, and easier implementation of post-merger procedures.

Brazil, while still relatively high in UA, could present more flexibility but may also require greater relationship-building efforts and cultural adaptation during integration.

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Failed acquisition of Brazilian company by SK

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Failed acquisition of Brazilian company by SK

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Case: CJ CheilJedang’s Cancelled Sale of CJ Selecta (Brazil)

Background: In October 2023, CJ CheilJedang (CJ), South Korea’s leading food conglomerate, agreed to sell a 66% stake in its Brazilian soy protein subsidiary, CJ Selecta, to Bunge Global SA. Termination: In April 2025, CJ canceled the deal, citing "uncertainties in meeting transaction conditions" and a desire to "resolve uncertainties and focus on stable business operations"

Contributing Factors:

Complex regulatory and operational challenges in Brazil.

Shifts in global market dynamics, including favorable soybean prices and new EU sustainability regulations benefiting CJ Selecta's operations.

CJ's strategic pivot towards long-term growth and stability.

Strategic Implications for M&A: Chile vs. Brazil

Cultural Alignment:

Uncertainty Avoidance:

o South Korea: High (85)

o Chile: High (86)

o Brazil: Moderate (76)

Implication: Chile's cultural alignment with South Korea's preference for structured and risk-averse environments suggests smoother integration and operational stability.

Power Distance:

o South Korea: High (60)

o Chile: High (63)

o Brazil: Very High (69)

Implication: Chile's similar hierarchical structures may facilitate better organizational synergy compared to Brazil's more rigid hierarchies.

Operational Considerations:

Regulatory Environment:

o Chile offers a more transparent and predictable regulatory framework, reducing transaction uncertainties.

o Brazil's complex regulatory landscape contributed to the CJ Selecta deal's termination.

Market Stability:

o Chile's stable economic policies and commitment to sustainability align with global market trends and investor expectations.

Conclusion: Chile as a Preferred Acquisition Target

The challenges faced in the CJ Selecta case underscore the importance of cultural compatibility and regulatory clarity in international M&A. Chile's alignment with South Korea in key cultural dimensions and its favorable business environment position it as a more suitable and strategic choice for future acquisitions

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The Finance Team focuses on evaluating the financial side of the M&A deal. They identify possible risks like currency changes or legal costs, estimate how much profit the deal could bring in the future, compare the target company’s financial strength to competitors, and calculate how much money Anam would need to invest in entering a new market like Chile or Brazil.

The Global Team looks at the bigger strategic picture. They research which country is more stable and suitable for Anam, analyze cultural differences that could affect teamwork and operations, and study political, legal, and social factors through tools like PESTLE and Hofstede’s cultural dimensions. They also look at how well Anam would fit with local partners.