LATAM: AGGREGATE DEAL VALUE GROWS 85% IN 1H17

Posted on
  • Deal volume in LATAM increased 3% in 2Q17 over 2Q16
  • Aggregate deal value is up 86%
  • Deal of the Month: Grupo México Transporte acquires Florida East Coast Railway for USD 2bn
TTR Insight

Deal volume in Colombia’s Oil &Gas sector increased 100% in 1H17 over the same six-month period in 2016, according to Transactional Track Record data. There were eight announced and closed transactions in the sector in the first six months of 2017 compared to four in 1H16.

 

 

Deal volume regionwide rose 3% in 1Q17 over 1Q16, with 509 announced and closed transactions in Latin America to the close of June. M&A activity is up 5% YTD, meanwhile, with 1,026 announced and closed deals in the region in 1H17.

Aggregate transaction value increased by 86% in 2Q17 over 2Q16 to USD 33bn regionwide, taking into account 218 deals of disclosed consideration. YTD, aggregate deal value is up 85% to USD 73.4bn, including 417 announced and closed transactions of disclosed consideration regionally in 1H17.

Top Six M&A Markets in LATAM

Brazil led deal flow regionally with 512 transactions together worth USD 44.5bn in 1H17, up 8% by volume and 220% by aggregate value compared to 1H16. There were 209 announced and closed deals of disclosed consideration in Brazil to the close of June contributing to 1H17 aggregate value.

Mexico follows with 148 deals worth a combined USD 10.7bn, up 1% by volume, down 13% by aggregate value, taking into account 57 deals of disclosed consideration, relative to the same half-year period in 2016.

Chile ranks third regionally with 120 deals together worth USD 5.1bn to the close of 1H17, up 13% by volume and down 49% by aggregate value over the first six months of 2016, taking into account 54 transactions of disclosed consideration.

Argentina continues to garner growing deal flow, with 117 announced and closed deals in 1H17 worth a combined USD 3.6bn, up 13% by volume and 3% by aggregate value, considering 41 transactions for which a consideration was disclosed.

Colombia registered 78 deals in 1H17, the same volume as in 1H16, while aggregate value grew 155% to USD 13.1bn, taking into account 30 transactions of disclosed consideration.

Peru rounds out the top six M&A markets in the region, notwithstanding a sizeable dip in both transaction volume and aggregate deal value. Transaction volume fell 27% to 58 deals while aggregate deal value declined 26% to USD 1.7bn, taking into account 32 transactions of disclosed consideration.

Cross-Border Deals

LATAM firms made 15 extra regional cross-border acquisitions in 2Q17, eight with targets based in North America, four in the EU, one in Asia and one in Australia. EU-based buyers led inbound acquisitions in Latin America in 2Q17, with 67 deals originating from the old world, US and Canada following with 59 transactions. Asian buyers led 19 transactions in Latin America, Australian firms seven and a sole Africa-based acquirer invested in the region.

Deal of the Quarter

TTR selected Grupo México Transporte’s USD 2bn acquisition of Florida East Coast Railway from Fortress Investment Group (NYSE:FIG) as Deal of the Quarter in LATAM. The buyer was advised by Galicia Abogados, Dechert and BBVA Bancomer, while the target was advised by Cravath, Swaine & Moore, Sidley Austin, Barclays Bank and Morgan Stanley.

Interview with Posadas, Posadas & Vecino

Tomás Gurméndez, partner at Posadas, Posadas & Vecino, discusses the M&A market in Uruguay and across Latin America
(Interview in English and Spanish)

TTR in the Press

BN AMERICAS – “Regional M&A activity shows heavy surge in valuation in H1”

AMÉRICA ECONOMÍA – “Fusiones y adquisiciones de América Latina aumentan 86,38% en el 2Q17”

EL FINANCIERO – “Las mexicanas duplican el valor de compras en EU”

 

Complete Report

DEAL VOLUME IN LATAM’S PHARMACEUTICAL SECTOR INCREASED 67% IN 2017

Posted on

Deal volume in Latin America’s Pharmaceutical, Parapharmaceutical and Cosmetics sector increased 67% between January and May 2017 compared to the same five-month period in 2016, according to TTR data, in collaboration with Ontier. There were five announced and closed deals in the sector in the first five months of 2017 compared to three over the same period last year.

LATAM: DEAL VOLUME AND AGGREGATE VALUE DOWN MODERATELY IN MAY

Posted on
  • Deal volume was down 1.7% in May 2017 over May 2016
  • Aggregate deal value fell 10% for the month
  • Deal of the Month: Saeta Yield acquires the Uruguay-based companies and Fingano for USD 65m
TTR Insight

Deal volume in Latin America’s Pharmaceutical, Parapharmaceutical and Cosmetics sector increased 67% between January and May 2017 compared to the same five-month period in 2016, according to TTR data (www.TTRecord.com), in collaboration with Ontier. There were five announced and closed deals in the sector in the first five months of 2017 compared to three over the same period last year.

Deal volume fell 1.7% in May across Latin America with 172 announced and closed transactions region wide. YTD, volume is up 5.5%, meanwhile, with a total of 857 deals in the first five months of the year.

Aggregate transaction value fell 10% regionally in May to USD 6.7bn, taking into account the 70 deals with a disclosed consideration. YTD, the aggregate value of the 334 transactions with a disclosed consideration increased 89% compared to the same January-May period in 2016, meanwhile.

Top Six M&A Markets in Latin America

Brazil dominated regional M&A activity YTD with 425 deals together worth USD 37.8bn, up 8% by volume and 227% by aggregate value compared to the same five-month period in 2016. There were 168 announced and closed deals of disclosed consideration in Brazil to the close of May contributing to YTD aggregate value.

Mexico followed with 118 deals worth a combined USD 9.3bn, up 1% by volume, down 14% by aggregate value, including the 45 deals of disclosed consideration, relative to the same January-May period last year.

Chile ranked third regionally with 104 deals together worth USD 3.3bn to the close of May, up 14% by volume and down 55% by aggregate value over the first five months of 2016, taking into account 44 transactions of disclosed consideration.

Argentina followed close behind, with 102 announced and closed deals YTD, up 15% by volume and 23% by combined value, considering the 41 transactions for which a sum was disclosed.

Colombia was down 1% by deal volume and up 188% by aggregate value to the close of May, with a total of 67 transactions, 24 with disclosed consideration together worth USD 12.7bn.

Peru rounds out the top six M&A markets in the region, despite a 29% decline in deal volume to 47 and a 26% fall in aggregate value to USD 1.4bn, taking into account 23 transactions of disclosed consideration.

Cross-Border Deals

Latin American firms made four outbound acquisitions in May 2017, two with targets based in North America, one in the EU and one in Asia. North American and EU-based buyers led inbound acquisitions in Latin America during May, with 24 deals originating from the US and Canada and 23 from across the pond. Asian buyers targeted three companies in Latin America and Australian buyers made two acquisitions in the region.

Deal of the Month

TTR selected the Saeta Yield’s USD 65m acquisition of Uruguay-based Vengano and Fingano, owners and operators of the Carapé I and Carapé II wind farms, from Argentina’s Corporación América and Spain’s Grupo San José as Deal of the Month. The buyer was advised by Jimenez de Arecha, Viana & Brause alongside Clifford Chance España. The sellers were advised by Guyer & Regules, M&M Bomchil Abogados and Lazard.

Interview with Brigard & Urrutia

Darío Laguado, legal partner from Brigard & Urrutia, discuss with TTR about his perspectives about the M&A market in Colombia and Latin America (Interview in english and spanish).

Rankings – Financial and Legal Advisory

Find the TTR ranking of financial and legal advisors (year to date) in our monthly report.

TTR in the Press

FORBES – “Chile gana atractivo entre empresas mexicanas”

LA REPUBLICA – “Prestasalud y Continental, dos de los negocios que se cerraron este mes”

GESTIÓN – “M&A en América Latina: Monto transado crece 89.4% hasta mayo del 2017”

Complete Report

LATIN AMERICA: AGGREGATE DEAL VALUE OF INDUSTRIAL SECTOR GREW 527%

Posted on

The aggregate deal value of transactions in the industrials sector in Latin America grew by 527% in 1Q17 compared to the same period last year. The growth in aggregate deal value contrasts with deal volume in the sector, which was down from 69 deals in 1Q16 to 50 in the first three months of 2017.

The leading source markets for cross-border deals in Latin America in 1Q17 were the US, with eight transactions together worth USD 1.9bn, followed by Brazil, with 18 transactions worth a combined USD 1.07bn, and Luxembourg, with a sole transaction worth USD 1.01bn.

LATIN AMERICA: COMBINED DEAL VALUE GREW 75% IN 1Q17

Posted on
  • Deal volume was up 4% to in 1Q17 over 1Q16 to 501 transactions regionwide
  • Aggregate deal value grew 75% in 1Q17 over 1Q16
  • Deal of the Quarter: Coca-Cola and Coca-Cola Femsa acquire AdeS from Unilever for USD 575m

 TTR Insight

The aggregate deal value of transactions in the industrials sector in Latin America grew by 527% in 1Q17 compared to the same period last year. The growth in aggregate deal value contrasts with deal volume in the sector, which was down from 69 deals in 1Q16 to 50 in the first three months of 2017.

The leading source markets for cross-border deals in Latin America in 1Q17 were the US, with eight transactions together worth USD 1.9bn, followed by Brazil, with 18 transactions worth a combined USD 1.07bn, and Luxembourg, with a sole transaction worth USD 1.01bn.

 

 

The total combined value of announced and closed transactions in Latin America stood at USD 38.2bn in 1Q17, up 75% over the same quarter last year, according to the latest TTR data.

Deal volume increased more modestly in the quarter at just over 4% over 1Q16 for a total of 501 transactions region-wide, of which 184 had disclosed considerations contributing to regional aggregate value.

Transactional Ranking by Country
  1. Brazil led the top six most active M&A markets by deal volume in 1Q17, with 256 transactions announced and closed in the quarter worth a combined USD 19.9bn, representing a 6% increase in volume and a 249% increase in aggregate value over 1Q16.2. Mexico followed as the second-most active M&A market regionally, with a total of 64 deals worth a combined USD 6.7bn, a 7% increase in volume and 21% decline in aggregate value over 1Q16.3. Chile ranked third in the region, with a 69 deals announced in 1Q17 worth a USD 2bn combined, a 28% increase in transactional volume and a 47% decline in aggregate deal value relative to 1Q16.4. Argentina followed as the fourth ranked market by M&A volume in the region in 1Q17 with 58 deals together worth USD 1.4bn, a 23% increase in deal flow and a 5% increase in aggregate value over 1Q16.5. Colombia was the fifth-most-active market by announced and closed deals in 1Q17 with 29 deals worth a combined USD 10.8bn, a 37% decrease in volume and a 266% increase in aggregate value over 1Q16.6. Peru ranked sixth regionally, with 27 deals in the quarter worth a combined USD 984m, representing a 25% dip in deal volume and a 30% decline in aggregate value compared to 1Q16.
Outbound Cross-Border Deals

Latin American buyers acquired 23 targets in North America, eight in the EU and one in Asia in 1Q17.

Deal of the Quarter

 

TTR selected The Coca-Cola Company and Coca-Cola Femsa’s joint bid for AdeS, including the target’s operations in Argentina, Brazil, Bolivia, Chile, Colombia, Mexico, Paraguay and Uruguay from Unilever for USD 575m as Deal of the Quarter for 1Q17.

The buyers were advised by Lobo & de Rizzo Advogados, Clifford Chance US, TozziniFreire Advogados, Berkemeyer, Curtis, Mallet-Prevost, Colt & Mosle Argentina, Von Wobeser y Sierra and Clifford Chance Brasil. The seller was advised by Baker & McKenzie US (Global), Trench, Rossi e Watanabe Advogados, Baker & McKenzie UK, Lazard (Global) and Alfaro, Dávila y Ríos.

Rankings – Financial and Legal Advisory

Find the TTR ranking of financial and legal advisors (year to date) in our quarterly report.

TTR in the Press

EL ECONOMISTA AMÉRICA: “Latinoamérica cierra un trimestre récord en el mercado de fusiones y adquisiciones”

ECONOMÍA HOY: “Inversiones en AL bailan al ritmo de la samba”

ESTRATEGIA & NEGÓCIOS: “Mercado transaccional de América Latina crece 4,38%”

Complete Report