Mergers and acquisitions market in Latin America reaches USD 7 billion 488 million in January

The monthly report on the Transactional Latin American Transactional Record Record market highlights a total of 151 operations in the region during the first month of the year, with Argentina, Chile, and Mexico with the best results.

By January 2019, Transactional Track Record selected the acquisition of 99.71% of Aquachile by Agrosuper as an outstanding operation in Latin America. Image: Pixabay
By January 2019, Transactional Track Record selected the acquisition of 99.71% of Aquachile by Agrosuper as an outstanding operation in Latin America. Image: Pixabay

The mergers and acquisitions market in Latin America recorded a total of 151 operations in January, of which 56 have a non-confidential amount, amounting to approximately USD 7 billion 488 million, according to the most recent Transactional Track Record report.

These figures imply a decrease of 8.48% in the number of transactions and an increase of 17.15% in the amount of these, with respect to January 2018.

Ranking of operations by countries. By a number of operations, Brazil leads the ranking of the most active countries in the region with 70 operations (despite a decrease of 14%), and an 8% decrease in mobilized capital in year-on-year terms (USD 2 billion 560 million).

Chile is next in the list, with 26 operations (an increase of 73%), and with a growth of 547% of its amount with respect to the same period of 2018 (USD 1 billion 295 million).

On the other hand, Mexico registers 23 operations (a decrease of 18%), and with a rise of 40% in the mobilized capital (USD 1 billion 724 million). Argentina, on the other hand, registers 16 operations (a decrease of 27%), with a rise of 117% in the mobilized capital (USD 812 million).

Meanwhile, Colombia has registered 15 operations (a decrease of 21%), with a decrease of 74% in its amount compared to the same period last year (USD 69 million). In the trend, Peru falls to the bottom of the list, with 10 operations (down 9%) and with a 57% drop in its mobilized capital (USD 724 million).

Cross-Border field. In the cross-border area, the investor appetite of Latin American companies abroad stands out in January, especially in North America, where 4 operations were carried out. Meanwhile, in Europe, only one transaction was recorded.

While the companies that have carried out the most strategic operations in Latin America come from North America and Europe, with 25 and 22 operations, respectively.

Private Equity and Venture Capital

In January, a total of 5 Private Equity operations were recorded, of which 3 recorded a combined amount of US $ 1 billion 169 million, which represents a decrease of 62% in the number of operations and a decrease of 39% in the amount of the same with respect to the same period of 2018.

On the other hand, 16 transactions were carried out in the Venture Capital market, of which 14 recorded an aggregate amount of USD 93.30 million, which corresponds to a 43% decrease in the number of transactions and a decrease of 74% in the amount of the same with respect to January of last year.

Featured transaction

By January 2019, Transactional Track Record selected the acquisition of 99.71% of Aquachile by Agrosuper as an outstanding operation in Latin America.

The operation, which registered an amount of USD 850 million, has been advised by the legal party by CMS Carey & Allende, and by Barros & Errázuriz Abogados. For the financial part, the operation has been advised by Banco BTG Pactual Chile.

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