Mexico mergers and acquisitions market increases 277% in Q1 of 2019

In the first three months of the year, 61 transactions have been registered in that country and the Internet sector is the most outstanding of the period, with 13 operations. Photo: Flickr
In the first three months of the year, 61 transactions have been registered in that country and the Internet sector is the most outstanding of the period, with 13 operations. Photo: Flickr

The M&A market in Mexico has recorded a total of 61 transactions in the first three months of the year, of which 27 add up to a non-confidential amount of US $ 3,543 million, according to the quarterly Transactional Track Record report (www.TTRecord. com). These data reflect a decrease of 37.76% in the number of operations and of 27.82% in the amount thereof with respect to the first quarter of 2018.

Of the operations accounted for from January to March, 0.97% belongs to operations between US $ 1 million and the US $ 10 million; 3.68% belongs to operations between the US $ 10 million to the US $ 50 million; 9.86% belongs to operations between the US $ 100 million and the US $ 500 million; and 48.15% belongs to operations greater than the US $ 500 million.

In sectoral terms, the Internet sector accounts for the most transactions in 2017, with a total of 13 transactions, followed by Technology with 9, in addition to Financial and Insurance, with 8 operations.

Cross-Border field

With regard to the Cross-Border market, so far this year, Mexican companies have mainly opted to invest in the United States and Spain, with 3 transactions in each country. By amount, Brazil stands out, with the US $ 912.13 million.

On the other hand, the United States is the country that has opted most for acquisitions in Mexico, with 6 operations. By amount stands out the United Kingdom, with the US $ 808.40 million.

Private Equity and Venture Capital

In the first quarter of 2019, there were a total of 2 Private Equity transactions valued at the US $ 28 million, representing a decrease of 83.33% in the number of transactions and an increase of 277.35% in the mobilized capital with respect to the first quarter of 2018.

For its part, in the first three months of 2019, Mexico has registered 14 Venture Capital operations valued at the US $ 97 million, which represents a decrease of 36.36% in the number of operations and a decrease of 45.04% in the mobilized capital with respect to the same period last year.

Asset Acquisitions

In the asset acquisition market, 19 transactions with an amount of US $ 514 million have been closed in the first quarter, which implies an increase of 5.56% in the number of transactions and a 64.66% decrease in the number of transactions. the amount with respect to the same period of 2018.

Outstanding Transaction

For the first quarter of 2019, Transactional Track Record has selected as an outstanding operation the one related to Celulosa Arauco, which has closed the acquisition of Masisa's subsidiaries in Mexico, valued at the US $ 160 million.

The operation has been advised by the legal side by Mijares, Angoitia, Cortés, and Fuentes; Creel, García-Cuéllar, Aiza y Enríquez and by Ramírez, Gutiérrez-Azpe, Rodríguez-Rivero, and Hurtado. Regarding the financial part, the operation has been advised by Inverlink and UBS Bank Mexico.

Ranking of Legal and Financial Advisors. In the TTR ranking of financial advisors, by amount, they lead in January 2019 Greenhill & Co, with the US $ 905 and, by a number of operations, Citigroup leads, with two operations.

In terms of the ranking of legal advisors, by number and number of operations, the companies Galicia Abogados and Mijares, Angoitia, Cortés and Fuentes lead, with amounts of US $ 801 million and two transactions in each firm.

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