Monthly Report: Latin America- August, 2017

LATIN AMERICA

  • Deal volume grew 8% in August
  • Aggregate deal value fell by 9%
  • Deal of the Month: Goldman Sachs’ West Street Infrastructure Partners acquires 50% stake in Compás – Compañia de Puertos Asociados from Grupo Argos.

TTR Insight

Deal volume in Chile’s food industry is up by 62.5% in the first eight months of 2017 over the same period last year, according to TTR data (TTRecord.com).


An overlook at the market

The total number of announced and closed transactions across Latin America grew by 8% in August over the same month in 2016 to 164 deals region wide, according to TTR data.

Aggregate transaction value fell 9% relative to August 2016, meanwhile, to USD 8.3bn, taking into account 67 deals of disclosed consideration.

Total transaction volume is up by about 2% YTD, while aggregate deal value is down nearly 19% to USD 55.8bn, considering 507 announced and closed transactions of disclosed consideration regionally to the close of August.

Top Six M&A Markets in Latin America

  1. Brazil leads deal flow regionally with 636 transactions together worth USD 33.4bn to the close of August, up 2% by volume and down 11% by aggregate value compared to the first eight months of 2016. There were 250 announced and closed transactions with a disclosed consideration in Brazil contributing to aggregate value to the end of August.

2. Mexico follows with 189 deals worth a combined USD 11.8bn, down 2% by volume and 11% by aggregate value relative to the same eight-month period in 2016, taking into account 77 deals of disclosed consideration.

3. Chile ranks third regionally by volume, its 149 deals YTD together worth USD 5bn, up 10% by volume, down 52% by aggregate value, compared to the first eight months of 2016, taking into account 59 transactions of disclosed consideration.

4. Argentina ranked fourth in Latin America at the close of August, its 151 announced and closed deals worth a combined USD 4.3bn, up 13% by volume and down 27% by aggregate value relative to the first eight months of 2016.

5. Colombia follows with 102 deals in the first eight months of the year, down 2% compared to the same eight-month period last year. Aggregate deal value is down 60% YTD to USD 2.8bn, taking into account 36 transactions of disclosed consideration.

6. Peru rounds out the top six M&A markets in the region with 78 deals YTD. Transaction volume fell 23% over the same period in 2016 and aggregate deal value slipped 7% to USD 3.2bn, taking into account 36 transactions of disclosed consideration.

Cross-Border Deals

Bidders based in Latin America made eight extra regional cross-border acquisitions in July, five with targets based in North America, two in the EU and one in Asia.

North America-based buyers led inbound acquisitions in Latin America in July, with 17 deals originating from either the US or Canada. EU acquirers made nine deals in Latin America, while four deals in the region were led by Asia-based buyers. One Australian firm acquired a target in the region in August.

Rankings

Visit our website and take a look at the rankings of legal and financial advisors in our monthly report.


Deal of the Month

TTR selected the USD 136m acquisition of a 50% stake in Compas – Compañia de Puertos Asociados by Goldman Sachs’ West Street Infrastructure Partners III fund from Grupo Argos as Deal of the Month. The target operates port terminals in Cartagena, Manzanillo, Barranquilla, Buenaventura, Aguadulce, Buenavista, Tolú and Houston. The buyer was advised by Gibson, Dunn & Crutcher. The target was advised by Dentons Cardenas & Cardenas and Greenberg Traurig. Grupo Argos was advised by Brigard & Urrutia Abogados, Philippi, Prietocarrizosa Ferrero DU & Uría and Sullivan & Cromwell.

 

Interview with Arturo Costabal

Arturo Costabal, partner at Aninat Schwencke & Cia. gives us his perspective on the Chilean transactional market.

“We consider real estate to be among the most important drivers of economic activity in Chile…We saw the renewable energy boom coming from some time ago, but the activity has now shifted from the development to the construction phase ahead of commissioning the projects”

Read the complete interview here.

 

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