LATAM: DEAL VOLUME AND AGGREGATE VALUE DOWN MODERATELY IN MAY

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  • 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

Technology leads deal flow in Brazil

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TTR-Deal-Tracker

TTR Deal Tracker
www.TTRecord.com

LATIN AMERICA

TTR Deal Tracker is a monthly email update identifying M&A trends in Latin America and compiling YTD rankings of leading financial and legal advisors

BRAZIL: Technology sector buoyant

Financial Services deals have increased by 100% YTD compared to the first two months of 2015, according to TTR data (www.TTRecord.com).

There were eight deals in the space in the first two months of 2015 compared to four in the corresponding period last year.

CHILE: Real Estate asset deals on the rise

Financial Services deals have increased by 100% YTD compared to the first two months of 2015, according to TTR data (www.TTRecord.com).

There were eight deals in the space in the first two months of 2015 compared to four in the corresponding period last year.

Rankings / League Tables

Latin America Ranking – 2016

Financial Advisory – Year to Date (YTD)

Banco Itaú BBA leads TTR’s Latin America financial advisory ranking for the first two months of 2016 with six deals worth a combined USD 975m, the same number of transactions it advised on by the end of February 2015, when it also led the chart with six deals, then worth USD 219m in aggregate. Banco BTG Pactual follows in second with half as many transactions YTD, worth USD 716m, compared to two in the first two months of 2015 worth USD 171m. BBVA is tied for third with BR Partners, Ártica Investimentos and BNP Paribas, all with two advisory mandates in the first two months of the year and all of them absent from the top 10 in the corresponding period of 2015. BBVA nonetheless leads the chart by aggregate deal value, its two deals worth a combined USD 3.9bn. The last four positions in the ranking are shared by investment banks that advised on just one transaction to the end of February 2016, none of them having ranked among the top 10 for the first two months of 2015.Legal Advisory – Year to Date (YTD)

Baker & McKenzie shares its lead with Jones Day in TTR’s Latin America legal advisory ranking at the close of February, each with three transcations YTD. Baker & McKenzie also led the chart for the corresponding period in 2015, when Jones Day didn’t appear among the top 10. Davis & Gilbert, also absent from the top 10 a year ago, ranks third with two deals under its belt YTD. Fourth place by deal volume is shared by seven firms that have each advised on a sole transaction to the end of February, Allen & Overy and Ashurst with the greatest reported deal value of the lot at USD 1bn.

Brazil Ranking – 2016

Financial Advisory – Year to Date (YTD)


Banco Itaú BBA leads TTR’s Brazil financial advisory ranking by transaction volume with five deals YTD worth a combined USD 757m.Itaú is down one deal compared to its performance in the first two months of 2015, but up 245% by aggregate value from its six deals together worth USD 219m a year ago. Banco BTG Pactual follows in second with three deals together worth USD 716m. BTG Pactual ranked third at the close of February, 2015 when it’d advised on two deals worth USD 171m. BR Partners has advised on two transactions YTD worth USD 951m in aggregate, putting the firm in third place, up from seventh at the close of February 2015 when it’d advised on a sole transaction in the first two months of the year. Seven firms share fourth by volume with one deal each YTD, BAML sitting on top of the group with the greatest transaction value, which it shares with BR Partners. Of these, only IGC Partners Assessoria Empresarial was among the top 10 at the close of February 2015, when it placed fifth with two deals of undisclosed consideration.

Legal Advisory – Year to Date (YTD)


Souza Cescon Advogados leads TTR’s Brazil legal advisory ranking at the close of February with seven transactions YTD worth a combined USD 1.7bn, up from seventh place a year ago when the firm had advised on five deals together worth USD 8m. TozziniFreire Advogados ranks second with six deals worth a combined USD 322m YTD after not having ranked among Brazil’s top 10 firms for the first two months of 2015. Stocche, Forbes, Padis, Filizzola, Clapis, Passaro, Meyer e Refinetti Sociedade de Advogados ranks third, advising on five transaction in the first two months of 2016 worth USD 231m in aggregate. It too was absent from the top 10 a year ago. Pinheiro Neto Advogados, also with five mandates YTD, is down by one deal from its performance a year ago. Lefosse Advogados, in fifth, has advised on four deals in the first two months of the year, worth USD 472m combined. Lefosse did not place among the top 10 at the end of February 2015. Machado, Meyer, Sendacz e Opice Advogados ranks sixth, also with four advisory mandates YTD,  down from second a year ago when it’d advised on seven transactions in the first two months of the year. The firm’s aggregate deal value is up by 39% from USD 163m a year ago. Koury Lopes Advogados added one deal and climbed three positions in the ranking from tenth a year ago to place seventh. Pinheiro Guimarães Advogados lost two transactions compared to its performance in the first two months of 2015, falling from fifth to ninth in the ranking as a result, its aggregate deal value up by 12% from USD 188m a year ago. Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados fell from first in the chart at the close of February 2015 to tenth with two mandates YTD compared to nine for the corresponding period last year, its aggregate deal value jumping by 280% to USD 352m from USD 93m a year ago, nonetheless.

Mexico Ranking – 2016

Financial Advisory – Year to Date (YTD)

BBVA, Deutsche Bank, JPMorgan and Morgan Stanley all participated in the same transaction in Mexico that closed at the end of January, placing the four banks at the top of TTR’s Mexico financial advisory ranking for the first two months of the year. PwC follows in fifth place, also with a sole transaction under its belt, in its case of undisclosed consideration.Legal Advisory – Year to Date (YTD)

Santamaria y Steta Abogados leads TTR’s Mexico legal advisory ranking at the close of February with three advisory mandates YTD. The firm was not among the top 10 at the close of February 2015. Galicia Abogados follows in second, up from third a year ago, with one deal in both corresponding two-month periods. The remaining firms in the chart have also advised on a sole deal YTD, Ritch Mueller being the only among them to have ranked among the top 10 a year ago when it held the same seventh place position.