Chile — Mountain Capital Partners is one of the ski resort companies that has grown the most in the 2020s. Recent acquisitions have included Lee Canyon in Nevada, Sandia Peak in New Mexico, Valle Nevado, and La Parva (the last two of which are in Chile). They intended to continue that growth in Chile, but have run into regulatory roadblocks.
This week, it was revealed that Mountain Capital Partners (MCP) has abandoned its plans to acquire Andacor S.A. That company owns four ski resorts in Chile, including El Colorado, Parque Farellones (a small ski area located next to El Colorado), Volcán Osorno and Pillán.
If the plan had gone through, it would have made the Tres Valles ski resorts (Valle Nevado, La Prava, and El Colorado) all run by Mountain Capital Partners. However, Chile’s National Economic Prosecutor’s Office (FNE) was against this, particularly the Tres Valles concept. For the deal to be approved, it would have required selling one of the three ski resorts.
¿Por Qué?
According to Chilean news website Chocale, analysis from the FNE found that this acquisition would have resulted in MCP controlling greater than 80% of ski market segments and up to 97% in sales to Chileans. While Andacor argued it was a “company in crisis,” the FNE didn’t believe this was a valid reason to approve the merger.
However, MCP intended to invest in the mountains and make the experience affordable for Chileans. The Storm Skiing Journal reported yesterday that MCP planned to spend at least $25 million in investments and a wide-ranging season pass to various destinations in North and South America. The upgrades would have included snowmaking enhancements, terrain expansions, and new lifts. You can learn more about the investments by checking out Stuart’s article.
I do get the regulatory arguments on this, as I could see the acquisition of this being a concern for the remaining independent players like Nevados de Chillan and Portillo. However, the skier in me is bummed we won’t see improved connectively for the Tres Valles of South America. We do know the ski infrastructure down there is dated, and it appears this move would have led to upgrades. While the Tres Valles will still be connected, it means they won’t all be under one lift ticket.
On the bright side, it does give MCP additional money to acquire other ski resorts/properties or further invest in its existing ski resorts. Earlier this summer, the company bought three golf courses in Arizona.
Image/Video Credits: El Colorado (Andacor S.A.), Mountain Capital Partners
