Informe Trimestral Perú – 4T 2019

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Capital movilizado en el mercado M&A de Perú  
aumenta un 2,72% en 2019 

De enero a diciembre se han registrado 135 transacciones en el país  

En el cuarto trimestre se han registrado 32 operaciones con un importe de USD 852,11m 

Sector Financiero y de Seguros, el más destacado del año, con 18 operaciones 

El mercado de M&A en Perú ha contabilizado en 2019 un total de 135 operaciones, de las cuales 50 suman un importe no confidencial de USD 8.162m, de acuerdo con el informe trimestral de Transactional Track Record. Estos datos reflejan un aumento del 2,72% en el capital movilizado y una disminución del 15,63% en el número de operaciones, con respecto al mismo periodo de 2018.  

Por su parte, en el cuarto trimestre de 2019 se han contabilizado un total de 32 operaciones con un importe agregado de USD 852,11m. 

En términos sectoriales, el Financiero y de Seguros es el sector más activo del año, con un total de 18 transacciones.  

Ámbito Cross-Border  

Por lo que respecta al mercado Cross-Border, en 2019 las empresas peruanas han apostado principalmente por invertir en Colombia, con 4 operaciones, seguido por México, con 4 y 3 transacciones, respectivamente. Por importe, destaca Uruguay, con USD 490m.  

Por otro lado, Estados Unidos, con 14 operaciones, y España y Colombia y Chile, con 9, 7 y 6 operaciones en cada país, respectivamente, son también los países que más han apostado por realizar adquisiciones en Perú. Por importe destaca Hong Kong, con USD 3.815m. 

Private Equity y Venture Capital

Hasta diciembre de 2019 se han producido un total de 11 transacciones de Private Equity valoradas en USD 462m, las cuales representan una tendencia estable en el número de operaciones y una disminución del 57,68% en el capital movilizado con respecto a diciembre de 2018.  

Por su parte, Perú ha registrado hasta diciembre 7 operaciones de Venture Capital valoradas en USD 109m, lo que representa un descenso del 30% en el número de operaciones y un aumento del 534,44% en el capital movilizado con respecto al mismo periodo del año pasado. 

Compra de Activos 

En el segmento de Asset Acquisitions se han contabilizado a lo largo del año un total de 30 operaciones, de las cuales 17 tienen un importe no confidencial agregado de USD 2.669m. Esto supone un aumento del 36,36% en el número de operaciones y un alza del 591,42% en el importe de las mismas con respecto al mismo periodo del año anterior. 

Transacción Destacada  

Para el cuarto trimestre de 2019, Transactional Track Record ha seleccionado como operación destacada la relacionada con American Towers, el cual ha adquirido un portfolio de torres de telecomunicaciones (1.980 en Chile y 1.262 en Perú) de Entel por USD 772m. 

La transacción ha estado asesorada por la parte legal por DLA Piper y por Claro y Cía. Abogados. Por la parte de asesoría financiera, la transacción ha sido asesorada por Asset Chile; Banchile Citi Global Markets y por Banco Santander Perú. 

Ranking de Asesores Legales y Financieros 

DealMaker Q&A

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TTR DealMaker Q&A with PPU Peru Partner Rafael Boisset

Rafael Boisset, Partner in Philippi Prietocarrizosa Ferrero DU & Uría Perú, is an expert in corporate matters as well as mergers and acquisitions of private and listed companies in various industries of economy, representing both sellers and buyers. He has advised significant clients by his active participation in the strategic planning of acquisitions and corporate restructuring, project finance, and banking and corporate financing through capital markets. He has experience representing investment banks as well as companies that raise funds from international capital markets.

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TTR – Firstly, Mr. Boisset, we would like you to share your opinion on the progress of the Peruvian market in 2019. 

R. B. – Both the number and value of deals reported proved to be a quiet active year in terms of M&A transactions, which turns to be interesting considering the slowdown of the Peruvian economy and the political crisis we faced during the year and particularly in the last quarter. Once again the energy sector has been the most relevant in terms of size and complexity but we also saw relevant deals in the manufacturing industry, such as the Intradevco Industrial sell to Alicorp.

TTR – As an advisor in M&A deals, what could you tell us about the investors that show interest in Peru-based companies? What are the main attractions of those companies? 

R. B. – I would say macroeconomic stability, low inflation, stable exchange rates, independency of the Central Bank, simplicity of its tax regime, and a deep potential growth of the middle class, which is an opportunity in several industries.

Despite the slowdown of the economy, Peru has proved to be a country, in which its macroeconomic fundamentals showed to be isolated from the political instability 

TTR – In 2019, there was an interesting increase in agribusiness deals in the country. What can you tell us about that upsurge? 

R. B. – Unlike other countries in the region, Peru’s large coast has some strategic keys for the agribusiness, such as predictable weather, access to ports for exportation, water supply and reasonable land prices and workforce costs. We have seen a consolidation of land and production of local investors in the last 10 to 15 years, that are now being acquired by bigger players that need such scale to invest. 

TTR – What other sectors could potentially have a noteworthy increase in their activity in the mid-term? Why? 

R. B. – It will of course depend on how the economy will move in the mid-term, but we expect that sectors related to the increase of the middle class be more active, such as education, retail, healthcare, and real estate. 

Two other sectors that may be relevant are mining and infrastructure. In mining, the slowdown of commodity prices creates the need for some companies to divest and the opportunity to others to invest. In infrastructure, we expect the criminal trials to end in the midterm allowing new investors to acquire assets that the current conditions do not offer the transparency and security that are needed. 

TTR – Lastly, what is your forecast for the next year?

R. B. – We believe it will be a very active year, probably even more active than 2019. Key sectors will be education, healthcare and manufacturing.

Informe Perú – 2T 2019

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Capital movilizado en el mercado M&A de Perú registra 
USD 2.062m hasta junio de 2019

  • De enero a junio se han registrado 65 transacciones en el país  
  • En el segundo trimestre se han registrado 33 operaciones con un importe de USD 979,92m 
  • Sector de Agricultura, Agronegocios y Ganadería, el más destacado del año, con 11 operaciones 

Madrid, 15 de julio de 2019- El mercado de M&A en Perú ha contabilizado en los seis primeros meses del año un total de 65 operaciones, de las cuales 28 suman un importe no confidencial de USD 2.062m, de acuerdo con el informe trimestral de Transactional Track Record (www.TTRecord.com). Estos datos reflejan una disminución del 58,97% en el capital movilizado y un descenso del 18,75% en el número de operaciones, con respecto al mismo periodo de 2018.  

Por su parte, en el segundo trimestre de 2019 se han contabilizado un total de 33 operaciones con un importe agregado de USD 979,92m. 

En términos sectoriales, el de Agricultura, Agronegocios y Ganadería es el sector más activo del año, con un total de 11 transacciones.  

Ámbito Cross-Border 

Por lo que respecta al mercado Cross-Border, en lo que va de año las empresas peruanas han apostado principalmente por invertir en Colombia y Estados Unidos, con 4 y 2 transacciones, respectivamente. Por importe, destaca Panamá, con USD 100m.  

Por otro lado, España, Estados Unidos y Chile, con 6 operaciones en cada país, son también los países que más han apostado por realizar adquisiciones en Perú. Por importe destaca Hong Kong, con USD 225m. 

Venture Capital 

Hasta junio de 2019, Perú ha registrado 6 operaciones de Venture Capital valoradas en USD 109m, lo que representa un descenso del 14,29% en el número de operaciones y un aumento del 931,91% en el capital movilizado con respecto al mismo periodo del año pasado. 

Compra de Activos

En el segmento de Asset Acquisitions se han contabilizado a lo largo del año un total de 13 operaciones, de las cuales 9 tienen un importe no confidencial agregado de USD 714m. Esto supone un alza del 18,18% en el número de operaciones y un aumento del 274,46% en el importe de las mismas con respecto al mismo periodo del año anterior. 

Transacción Destacada 

Para el segundo trimestre de 2019, Transactional Track Record ha seleccionado como operación destacada la relacionada con Telefónica, Facebook, IDB Invest, y CAF, los cuales han invertido en IpT de Perú.  

La transacción, valorada en USD 156m, ha estado asesorada por la parte legal por Garrigues Perú, Clifford Chance, DLA Piper Pizarro Botto Escobar, Estudio Echecopar y Rebaza, Alcázar & De Las Casas. Por la parte financiera, la transacción ha sido asesorada por Macroinvest – Grupo Macro. 

Ranking de asesores financieros y jurídicos 

El informe publica los rankings de asesoramiento financiero y jurídico del segundo trimestre de 2019 de M&A, Private Equity, Venture Capital y Compra de Activos, donde se informa de la actividad de las firmas destacadas por número de transacciones y por importe de las mismas. 

En cuanto al ranking de asesores financieros, por importe, lidera Bank of America, con USD 616m. Por número de operaciones, lidera APOYO Finanzas Corporativas, con 4 operaciones.  

En el ranking de asesores jurídicos, lidera hasta junio de 2019, por importe, Philippi, Prietocarrizosa, Ferrero DU & Uría Perú, con USD 715m. Por número de operaciones, lidera Estudio Muñiz, con 13 operaciones.  

DealMaker Q&A

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Eduardo Peláez

TTR DealMaker Q&A with UNE Asesores Financieros Partner Eduardo Peláez

Eduardo Peláez

Eduardo Peláez is Partner of UNE Asesores Financieros, an M&A advisory boutique focused in Latin America Small/Mid-Market. Eduardo Peláez has conducted many transactions in diverse sectors including tourism, chemicals, real estate and agriculture. Previously Eduardo was associate of Miranda & Amado Abogados and Hernández & Cía. Abogados. Also, worked in Lindley. 

He is Lawyer from Pontificia Universidad Católica del Perú and holds a MSc Management from Alliance Manchester Business School.

TTR: What’s your general outlook for the M&A market in Latin American this year, and specifically, in Peru?

EP: We believe the Latin American M&A market is experiencing a quite dynamic phase. Notwithstanding, the particular circumstances of each country in terms of macroeconomic conditions and political environment lead to diverse possibilities and projections. 

In the region there are markets like Venezuela, a country with enormous potential but absolutely isolated, but also the case of Chile, a nation with very stable economy and government, but with less opportunities for high returns. Also, there are some up-and-coming countries like Paraguay that has established favorable market conditions through a pro-investment regulatory and tax set of rules. 

The case of Peru is very particular. Despite of the political turbulence and the scandals of corruption, the economy is stable and the National Central Bank maintains its growth´s projections around 4%. The last two years have been marked by iconic transactions led by strategic investors pursuing market consolidation, such as the acquisition of the pharmacy chain MiFarma by Intercorp and the recent acquisition of Intradevco by Alicorp.

TTR: What are the primary factors influencing M&A decisions in the current economic climate? How do these economic fluctuations affect investment priorities?

EP: In the last decade, Peru has grown consistently. Even though the pace slowed since 2014, the Peruvian market maintains healthy indexes and presents opportunities for high returns, making it one of the most attractive markets in Latin America. 

Likewise, the Private Equity industry is taking more prominence in Peru, generating more dynamism in M&A activity. Global funds like Advent and Carlyle are already active investors in the Peruvian market. Also, there are other relevant players specialized in the mid-market such as HIG, L Catterton, Southern Cross and Victoria Capital Partners, that are exploring opportunities in Peru. 

From the sell-side standpoint, the political instability could make some businesses owners’ deciding to sell. Also, the new M&A regulation that will go into effect next year could accelerate the velocity of transactions and increase the volume of deals in the following months.

TTR: What is the state of the capital market in Perú? How has the country evolved in this respect in recent years? What is your forecast for the near-term?

EP: Peruvian capital market is still in an embryonic stage, characterized by low activity and hardly influenced by a few institutional investors. The exclusion of Credicorp from the FTSE Emerging Markets index is symptomatic. 

There are some significant efforts of developing the MAV (capital market for mid-size companies with less than S/. 350MM of annual revenue), but the results are modest, with just 13 listed companies since its inception in 2013. 

In this context, the recent creation of FIRBIs and FIBRAs, vehicles that have similarities with the American REITs, could represent a great opportunity to attract retail investors and increase the activity and liquidity of the capital market.

TTR: How difficult is it for corporates to access financing from local financial institutions in the current environment? What are the main barriers? How is financing structured?

EP: We have experienced a significant evolution in the volume of Peruvian companies accessing to the banking system in the past few years, going from 25% in 2014 to 40% in 2018, according to ASBANC. 

The big challenge is the inclusion of the majority of small and medium enterprises that currently have very few options. The fintech market represents a very interesting alternative for this type of businesses, particularly in the way of factoring platforms. 

Also, the increasing presence of foreign debt funds, especially Chilean, are becoming key participants, even in the small-and-mid size market. For example, recently we helped our client Llaxta Inmobiliaria y Constructora to obtain a US$ 10.5MM loan from Volcom Capital Chile for a real estate project in Piura, part of the social program “Techo Propio”.

TTR: Finally, we would like you to share with us your opinions and forecasts about the opening of the Peruvian market with other countries

EP: The Peru market presents many opportunities for all types of international investors, from strategic regional players to family offices and private equity and debt funds. 

Beyond the usual M&A activity in the mining sector, we see interesting opportunities of consolidation in the agricultural business. For example, there is the case of Hortifrut that became the leading berry producer in the world after the acquisition of El Rocío. Likewise, last year we had the opportunity to advise the British trader Wealmoor and Limones Piuranos in the acquisition of the mango and avocado´s exporter Sunshine. Also, recently we led the sale of the mango´s exporter Dominus to the Peruvian-Danish joint venture Danper. 

On the other hand, the real estate market still presents superiors return rates compared with other countries in Latin America, attracting global and regional real estate funds. 

Finally, considering the current development of modern retail, we believe Peru represents an interesting possibility for regional companies dedicated to services related with cold chain and specialized storage.

DealMaker Q&A

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Alberto Rebaza

TTR DealMaker Q&A with Rebaza, Alcazar & De Las Casas Partner Alberto Rebaza

Alberto Rebaza
Alberto Rebaza

Alberto Rebaza is founding partner and managing partner of Rebaza, Alcazar & De Las Casas law firm. Partner leads to mergers and acquisitions and corporate areas. In addition to his masters, he has studies at Georgetown University and England. He has also been director in several companies and organizations such as Edegel (Energy), Rigel Peru (Insurance), Liderman (Services), Amrop (Services), IPAE, Pesquera Alexandra (Fishing), YPO, among others.

TTR: Mr. Rebaza, firstly we would like to get your expert opinion, in a brief analysis, on the progress of the Peruvian M&A market in the first four months of the year.

AR: The Peruvian legal market has experienced an unusual volume of M&A closings in 1Q19 for all type and sizes of transactions. From the small/medium size deals with a strong strategic focus, to the multimillion dollar/cross-border deals that cover most of our newspapers. Our team has participated in 7 closings in 2019 so far (including strategic deals such as the sale of Papelsa to Grupo Gloria, the sale of Holding Plaza to Parque Arauco or the purchase of Duraplast and Novatec by Wenco). We are thrilled and have high expectations with our pipeline of transactions for 2Q19.


TTR: According to our data, Peru allocated a significant part of its investments to other Latin American countries, mainly Colombia and Chile. What attracts the interest of Peruvian investors? 


AR: There are several factors that may explain this phenomenon. First, Colombia and Chile are two countries with lots of social, historic, cultural and legal similarities with Peru. A regional expansion within those countries is normally catalogued as a soft landing for foreign investors.

Second, since the launching of the Pacific Alliance (Latin American trade bloc, formed by Peru, Chile, Colombia and Mexico) in 2011, Peruvian investors are taking a close look to the participant countries of the Pacific Alliance to diversify or expand their businesses. It is worth noting that, despite certain tax benefits (agreements to avoid double taxation or tax reductions, among others), the founding members of the Pacific Alliance executed an agreement to abolish all tariffs of merchandise trade by January 2020, making this integration a unique Latin American marketplace for producers.


TTR: Similarly, Colombia appears so far in 2019 as one of the main investors in the country. How do you think this reciprocal business relationship between the two countries will evolve? How does it benefit their economies?


AR: Colombian investors have been major players in the M&A industry in the recent years and I wouldn’t expect that to change in the near future. They are the third major foreign investors in Peru, after Spain and Chile.

Back in 2018, the Colombian Business Council in Peru announced fresh investments for over US$ 2B in Peru for the years 2018 and 2019. Their main focus is on projects related to the infrastructure, electricity, hospitality, transport and in the cosmetic industry.

In addition to the investment projections of Colombian players, I think the real deal will come once the corruption crisis in Peru is overcome. The Colombians experience in public-private partnerships and Public Works Tax Deduction projects will for sure contribute our economy in a positive way. Their input and investment will boost public projects (and therefore our economy) and increase our employment rate considerably.


TTR: Meanwhile, transactions in Agriculture, Agribusiness, Farming and Fishing have increased in Peru, compared with previous years when that subsector wasn’t as prominent. What could you tell us about that? Do you think the tendency will remain?


AR: The fishing industry in Peru is now consolidated, however, the government has been debating the last months certain legislative modifications that may heavily impact the industry, such as the increase of the fishing rights.

On the other hand, we have viewed a transactional boom related to shrimp-based business like the purchase of La Fragata by Marinazul (affiliated to Grupo Camposol).

Furthermore, the agricultural-related industries are facing an unusual increase in their sectors due to the international demand for agricultural products. We have notice the peculiar interest of foreign investments funds and, particularly, private investors from Chile in the purchase of estates in the north of Peru to develop agribusiness and farming companies. Peru is a privileged country for the agribusiness, making it one of the most suitable natural producers. The progressive increase of the worldwide demand, followed by a friendly legal framework that includes income tax reductions and special depreciation conditions are the perfect match for this boost.


TTR: Lastly, Peru has recently suffered and been involved in certain corruption scandals. How do you think those scandals affect the country’s economy today? What is your outlook on the matter?


AR: Thankfully, the political crisis experienced in Peru last year and the current corruption cases have not prevented the unstoppable growth of our economy and, specifically, of the M&A players’ appetite.

However, it is important to note that all major infrastructure projects have been stopped and their continuity is under analysis. This has deeply affected our economy and the governmental stability, lowering the Peruvian employment rate. I believe this corruption turmoil may only be disregarded by a strong political force that needs to convey economic trust and decision-making features. Furthermore, we are now facing an exchange in the players or the main public projects. The typical powerful Brazilian and local companies are been replaced by international actors of various backgrounds.

Should the current government be unable to revert this situation, I believe the presidential elections in 2021 will be the right moment to overcome this scenario.