Total number of transactions fell by 23% in Latin America
- LatAm Deal volume fell 23% in November 2017
- Aggregate deal value fell 51% to USD 7.4bn
- Deal of the Month: IEnova acquires a 50% stake in Ductos y Energéticos del Norte from Pemex Transformación Industrial
Scope of the Latin American market
- The total number of announced and closed transactions in Latin America fell by 23% in November over the same month in 2016, according to TTR data.
- Aggregate transaction value fell 51% relative to November 2016 to USD 7.4bn, considering 65 deals of disclosed consideration region wide.
- Total transaction volume YTD is up nearly 4%, meanwhile to 1,887 deals, though aggregate value has slipped 23% to 88.3bn in the first 11 months of the year, taking into account 810 announced and closed transactions of disclosed consideration across Latin America.
TOP SIX M&A MARKETS IN LATIN AMERICA
- Brazil leads deal flow regionally with 974 transactions together worth USD 53.2bn to the close of November, up 6% by volume and 6% by aggregate value compared to the first 11 months of 2016. There were 426 announced and closed transactions with a disclosed consideration in Brazil contributing to aggregate value in the first 11 months of the year.
- Mexico follows with 265 deals worth a combined USD 17bn, down 2% by volume and down 40% by aggregate value relative to the same 11-month period in 2016, taking into account 125 deals of disclosed consideration.
- Chile ranks third regionally, its 217 deals YTD together worth USD 8.6bn to the close of November, up 17% by volume and down 36% by aggregate value over the first 11 months of 2016, taking into account 91 transactions of disclosed consideration.
- Argentina ranks fourth in Latin America with 199 announced and closed deals worth a combined USD 5.3bn, up 10% by volume and down 68% by aggregate value, considering 87 transactions for which a deal value was disclosed to the end of November.
- Colombia follows in fifth place regionally with 149 deals in the first 11 months of the year, up 3% over the same period last year. Aggregate deal value fell 81% to USD 3.6bn, taking into account 56 transactions of disclosed consideration.
- Peru rounds out the top six M&A markets in the region, its transaction volume down 14% to 114 deals, its aggregate deal value up 9% to USD 5.8bn relative to the first 11 months of 2016, taking into account 54 transactions of disclosed consideration.
CROSS-BORDER DEALS
Bidders based in Latin America made four extra-regional cross-border acquisitions in November, one targeting a company in North America, and three with targets in the EU.
North American buyers led inbound acquisitions in the region during the month of November, with 21 deals originating from the US and Canada. EU-based acquirers made 10 inbound deals in the region, while a sole Australian buyers made an acquisitions in Latin in November.
DEAL OF THE MONTH
TTR selected the IEnova’s USD 231m acquisition of a 50% stake in Ductos y Energéticos del Norte from Pemex Transformación Industrial as Deal of the Month in November. The Mexico City-based pipeline operator was advised by Mijares, Angoitia, Cortés y Fuentes, while the state-held oil company subsidiary used DLA Piper Gallástegui y Lozano Mexico as legal advisor and BBVA Bancomer as financial advisor.
INTERVIEW WITH ROBERTO MACLEAN
Roberto MacLean, partner at the law firm Miranda & Amado Abogados
“I consider that in Peru the restrictions for financial assistance could be deleted under some conditions, protecting minorities against conflicts of interests that may appear between the interests of the purchased shareholder and minorities. This situation It’s better than restrict it completely.”