LATAM: DEAL VOLUME AND AGGREGATE VALUE DOWN MODERATELY IN MAY

  • 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

Leave a Reply

Your email address will not be published. Required fields are marked *