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

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