About

Number of years practice: 19 Law school attended: Yale Law School Languages spoken: English, French, Italian, Portuguese and Spanish Principal practice areas: M&A, Project Development, Project Finance Admissions: Texas

Working out of the firm’s Houston office, Sergio Pozzerle’s practice stretches across corporate and M&A activity, projects, energy and infrastructure. He has considerable expertise in every stage of project development and financing and has particular profile and experience for his work in the renewables sector, particularly wind farms. Among other matters he has advised a leading power generation company on the development of a 150MW wind project in Baja California; represented two separate wind-energy developers in connection with significant claims against a turbine supplier in both Mexico and the US; and assisted Mitsui in connection with its acquisition of 50% interests in both the 164MW Bii Stinu and the 160MW Santo Domingo Ingenio wind farms in Oaxaca. Post-energy-sector reform, he has represented an international commodities trading company in its joint venture and associated gas supply arrangements with Pemex; a major developer in connection with the construction of an approximately 800MW gas-fired cogeneration project in Mexico; and a locally-based mining company on the development of a 230MW petroleum coke-fired power plant in the state of San Luis Potosí. He has also advised clients on the use of NAFTA and other treaty-based protections to address unfair treatment of US exports into Mexico. What have been three of your career highlights in Mexico to date? I have been involved in the first major gas-fired co-generation project to be undertaken after the energy reform in Mexico. The matter is ongoing, so many of the details are confidential, but the project bridges the range between the previously existing self-supply regime for privately developed power projects and the new Mexican market regime. In addition, it relies upon the still-developing natural gas infrastructure and markets in Mexico. Through this single project, I have been on the cutting edge of many of the most important aspects of shaping the Mexican electricity and gas markets post-Mexican energy reform. I was also involved in representing a major international commodities trading company in its joint venture and associated gas-supply arrangements for the supply of US natural gas for import into Mexico. The importation of US natural gas into Mexico is a growing trend and is a significant part of the Mexican gas market. Finally, I have been involved in a number of M&A transactions involving cross-border investments into manufacturing and distribution businesses in Mexico (including bicycles, baby products and other consumer goods). These have typically involved Mexican family-owned businesses selling a majority of their business and entering into a joint venture with a larger international investor to take their business to the next level. These transactions highlight some of my experience outside the energy sector. What differentiates your practice from that of other private practice lawyers? My practice is almost a hybrid of legal and commercial advisory. For example, in the context of the Mexican energy reform in the electricity sector, I have developed a deep understanding of the Mexican electricity market on a commercial level (based, in part, on my knowledge of the US electricity markets on which it was based) that most practitioners (US or Mexican) do not have. As a result, I am able to analyze risks and develop creative structures to address them alongside my clients and am able to add value beyond pure legal advice. In addition, I am a native Spanish speaker (originally from Argentina), so I have a natural language and cultural advantage to many of my competitors. Why has Mexico been a particularly strong focus for you? The Mexican energy reform has created tremendous opportunity for investment. Given my deep knowledge of the full range of energy transactions (electricity, gas, upstream, LNG, etc.) and the fact that I am a native Spanish speaker, Mexico is a natural area of focus and of growth. My location in Houston, just a two hour flight away from Mexico City, is also a natural launching point for US-based investment into Mexico. What are your predictions for change in the US-Mexico relationship? This question is difficult to answer in light of the new administration. That said, I expect that business opportunities will continue to dictate a greater level of investment into Mexico, particularly in energy and infrastructure. Even if “trade” is negatively affected, I expect inbound investment into Mexico to continue. Is there a key economic factor or trend you regard as likely to impact the Mexican legal sector over the next 18 months? As I said, the effect of the new administration is still uncertain. The market reaction has been a weaker peso. The weaker peso should create opportunity for dollar-based investment into Mexico (since the dollar will have increased buying power), so long as the underlying market for the product of the investment is not also weakened by the weaker Mexican peso.