Latin America – January 2015 Report

Posted on February 15, 2015February 22, 2018

In January, US-based companies were the most acquisitive in the Latin American market, with 24 deals recorded, and followed by European acquirers with 12. Highlights include AT&T’s acquisition of Nextel México, for USD 1.88bn, and of lusacell for USD 2.5bn.
The Latin American transactional market was particularly active, with a total of 145 deals registered, which generated approximately USD 10.93bn. As far as countries, (…)

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México – El número de fusiones y adquisiciones aumentan en 2014 un 28.6% respecto al año anterior

Posted on January 22, 2015February 22, 2018

Informe anual sobre el mercado transaccional mexicano

En total en 2014 se han registrado 225 operaciones por importe de USD 30,103.61m
En el ámbito de private equity la actividad ha crecido un 49% respecto a 2013

Madrid, 22 de enero de 2014.- El año 2014 ha dejado un buen sabor de boca en el mercado transaccional mexicano y en total se han registrado 225 fusiones y adquisiciones, entre anunciadas y cerradas, lo que supone un aumento interanual del 28.6%, según el informe anual de TTR (www.TTRecord.com). En cuanto al volumen de inversión este año se ha situado en USD 30,103.61m, frente a los USD 43,831m de 2013, pero hay que recordar que el pasado año se produjo la transacción de compra de Grupo Modelo la cual sola tuvo un importe de USD 20,100m.

Por segmentos, el mercado alto ha registrado un ligero aumento en el número de operaciones pasando de las 16 de 2013 a las 18 de este año, lo que muestra un interés de las empresas en realizar transacciones de importes elevados. Tal es el caso de la compra por parte de la estadounidense PPG Industries de la mexicana Consorcio Comex por un importe de USD 2,300m.

En cuanto a los sectores más activos en 2014 destacan Tecnología e Internet, con 26 transacciones cada uno, seguido por el financiero y seguros con 23 y distribución y retail con 15. Una tendencia que se ha repetido mes a mes durante todo el año.

En el ámbito cross-border, las empresas británicas y estadounidenses han sido las que más adquisiciones han realizado en México; sin embargo, las compañías mexicanas han optado por Estados Unidos y España para llevar a cabo sus planes de internacionalización.

Las cifras positivas también se han repetido en el mercado de private equity y venture capital donde el número de operaciones en 2014 ha crecido casi un 49% respecto al año anterior. Entre las inversiones más destacadas se encuentra la compra por parte del private equity suizo Partners Group de una participación mayoritaria en el capital social de Fermaca, compañía gasística mexicana, por USD 750m.

El mercado de capitales no ha alcanzado las cifras de 2013, sin embargo se han presenciado transacciones relevantes como la salida a bolsa de Fibra Prologis por USD 664,52m o la ampliación de capital realizada por City Express por USD 176m aproximadamente.

Perspectivas para 2015

Tras un año de crecimiento en el área de fusiones y adquisiciones, se espera que 2015 también traiga buenas noticias con la conclusión de operaciones que se han quedado en el tintero en 2014 y con la ratificación de las reformas realizadas por el Gobierno de México en ámbitos tan relevantes como la energía y las telecomunicaciones y que permitirán a inversores extranjeros desembarcar en el país latinoamericano.

Entrevista con Pablo Rión & Asociados

El partner de Pablo Rión & Asociados, Alexander von Griesheim, ha comentado para TTR: “Sin duda 2015 debería ser el año en que México encabece el mercado transaccional en América Latina. Creo que el pipeline actual así lo demuestra”.

Transacción destacada

En el cuarto trimestre de 2014, TTR ha seleccionado como transacción destacada la compra por parte de PPG Industries del 100% de Consorcio Comex por USD 2,300m. En la operación han participado como asesores legales White & Case México, Hogan Lovells US y Basham Ringe y Correa.

Ranking de asesores financieros y jurídicos

El informe publica los rankings de asesoramiento financiero y jurídico de 2014 de M&A, Private Equity y Mercado de capitales, donde se informa de la actividad de las firmas destacadas por número de transacciones y por importe de las mismas.

Para más información:

Leticia Garín

TTR – Transactional Track Record

Tlf. + 34 91 279 87 59

leticia.garin@ttrecord.com

www.TTRecord.com

TTR – Transactional Track Record es un servicio premium online de apoyo a las decisiones de inversores, empresarios y asesores. Incluye la mayor base de datos de transacciones del mercado hispano-portugués, así como el acceso a los detalles financieros de las empresas implicadas.

TTR Dealmaker Q&A – Carlos Mello (Lefosse Advogados)

Posted on January 16, 2015February 22, 2018

TTR Dealmaker Q&A

January, 2015

Cielo forms JV with BB Elo

USD 4.48bn

Carlos Mello
Lefosse Advogados

Carlos Mello, partner at Lefosse Advogados, advised Cielo on its USD 4.48bn credit card issuing joint venture with Banco do Brasil subsidiary BB Elo Cartões e Participações, which closed on 19 November. A graduate of University of São Paulo with an LLM from Columbia University, Mello joined Lefosse in 2010. His practice focuses primarily on capital markets and M&A.

________________________________________________________________________________

Q: How did this JV originate and to what end?

A: Banco do Brasil has been increasingly doing this sort of partnership to have the ability to run companies more like private companies do. It’s what happened in insurance with Mapfre and with Votorantim in investment banking. As a state-held company, Banco do Brasil has very strict protocols when contracting services; it’s a complicated process and takes a long time. It’s very natural that it would look for this type of partnership in the credit card business as well. For BB Elo, it allows it to manage the issuing business in a more private-like environment, and for Cielo it adds a complementary line of business to its other services.

“For BB Elo, it allows it to manage the issuing business in a more private-like environment, and for Cielo it adds a complementary line of business”

Q: At what stage was Lefosse retained?

A: We first started working on the transaction in March, 2014. The negotiations kind of stopped in mid-May-June for commercial reasons, and resumed around November. A lot of the economic terms had been defined, they were pretty advanced prior to our involvement.

Q: Why was Lefosse selected for the mandate?

A: It’s a very strategic deal in a very particular industry; the credit card business is very complicated. There are not many lawyers with expertise in this segment – I happen to be one of them. I did the IPOs of all the credit card acquirers and was contacted directly; there was no beauty contest. I did Cielo’s joint venture with American Express; I did its IPO and bond issuance. These were two listed entities, this was right up my ally. We were co-counsel in the transaction alongside a team from Barbosa, Müssnich & Aragão led by Francisco Müssnich.

Q: What was unique about this transaction?

A: This was a deal that was made possible because of changes in the Brazilian industry with the implementation of new regulation. The credit card industry was unregulated until last year. The new regulation made the interconnections between the different actors more clear – it gave Banco do Brasil the framework to form this joint venture. It’s a highly new deal into a recently regulated industry.

Q: What brought about the new regulation?

A: The Central Bank wants to have supervisory authority over all the systems of payment. The credit card industry as an unregulated business is something they were looking into, to set the parameters, from a supervisory and financial health viewpoint. On doing that, they created the opportunity for certain banks like Banco do Brasil. The Central Bank had been reviewing, studying and analyzing the credit card industry for about 10 years. Credit card issuers will now be subject to similar oversight as banks, with minimal capital requirements, submission of monthly balance sheets to the Central Bank which may audit, request additional information or a capital increase. At the end of the day its better for the consumer and the merchants to be more secure and connected to the banking industry. It’s just a natural development following the Central Bank’s creation of the Brazilian Payment System over 10 years ago.

Q: What other transactions could this deal precipitate?

A: I think the expectation is that other banks will join this joint venture. It may be easier for banks to join the JV rather than pursue similar deals on their own, depending on the scale of the business. It could be onerous for each bank to maintain the complicated structure independently, depending on which cards they issue.

Mexico – First, second, Third and Fourth Quarter 2014

Posted on January 15, 2015February 22, 2018

In 2014, the Mexican transactional market was particularly dynamic, with a total of 225 mergers and acquisitions, both announced and closed, which represents a 28.6% increase compared with the previous year. However, the investment volume generated was USD 30.10bn compared with USD 43.83bn in 2013, but, it is important to take into account that in 2013 we recorded the acquisition of Grupo Modelo, for USD 20.10bn.

Regarding market segments, there was a slight increase in the number of deals registered in the high-end market in deal size (>USD 500m), 16 deals in 2013 compared with 18 this year, which denotes an increasing interest in this type of deals. Highlights include the acquisition by US-based PPG Industries of Mexico-based Consorcio Comex, for USD 2,300m.

The most active sectors, in 2014, were technology and Internet, with 26 deals recorded each, followed by the financial and insurance (23), and distribution and retail (15). This tendency was repeated throughout the year.

In the cross-border sector, British and US-based companies were the most acquisitive in the Mexican market; however, Mexican companies chose United States and Spain to carry out their international investments.

Furthermore, the private equity and venture capital segments were also dynamic, with a 49% increase in the number of deals this year, compared with 2013. Highlights include the acquisition by Swiss private equity fund Partners Group of a majority stake in Fermaca, a Mexican gas company. The deal value was USD 750m.

The capital markets was less active in 2014 compared with the previous year. Nevertheless, several relevant deals were recorded, such as an IPO carried out by Fibra Prologis, for USD 664.52m. In addition, City Express carried out a capital increase for approximately USD 176m.

After a year of growth in the M&A transactional market, it is estimated that 2015 will be a positive year. Several deals that were not completed this year should be closed in 2015, and the legislation reforms carried out by the Mexican Government, in sectors such as energy and telecommunications, will enable foreign investment in Mexico.

Consorcio Comex – Manufacturer of decorative and waterproofing paints.

Go to Report > http://www.ttrecord.com/en/publications/monthly-report-mexico/Mexico-First-second-Third-and-Fourth-Quarter-2014/1283/

Brazil – First, second, Third and Fourth Quarter 2014

Posted on January 15, 2015February 22, 2018

In the fourth quarter of 2014, the Brazilian transactional market registered 231 deals, both announced and closed, compared with 225 recorded in the same period last year. The investment volume generated was approximately BRL 71.27bn, taking into account deals with disclosed values. In the whole year, a total of 816 deals were registered generating an investment volume of approximately BRL 193.16bn, which represents a 52% increase compared with 2013.

Regarding deal value in the last twelve months, 71.2% of these transactions involved amounts inferior to BRL 200m.

In the cross-border sector, US-based companies were the most acquisitive in the Brazilian market this last quarter, with 25 acquisitions carried out in the technology, internet, multimedia, and distribution and retail sectors. UK-based acquirers were the second most active in Brazil, with six acquisitions. On the other hand, Brazilian companies made nine acquisitions abroad this last quarter, and only three were made outside Latin America.

Transactions involving Private Equity and Venture Capital firms represent 11% and 13%, respectively, of the total number of deals registered in 2014. The volume invested by private equity firms was approximately BRL 5.88bn, compared with BRL 5.32bn in 2013. The Venture Capital segment generated an investment volume of approximately BRL 143.14m this quarter, compared with BRL 363.55m generated in the same period last year. The internet companies attracted most of the investments; 68 deals were registered. Throughout 2014, the investments carried out by Venture Capital firms generated approximately BRL 1.09bn.

TTR’s highlighted deal this quarter was carried out by Península Participações in the acquisition of a 10% stake in Carrefour Brasil, for BRL 1.80bn.

Patrocinado por:

Carrefour Brasil – Food retail company.

Go to Report > http://www.ttrecord.com/en/publications/monthly-report-brazil/Brazil-First-second-Third-and-Fourth-Quarter-2014/1300/

Legal Advisors

Latin America – January 2015 Report