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: Construction deals double
Deal volume among Brazilian construction companies grew 112% in the first 11 months of 2016 over the same period last year, according to TTR data (www.TTRecord.com).
Joint ventures and asset sales have also increased in the sector, while the number of foreign-led transactions jumped from five to eight between the two 11-month periods. The BRL 328m (USD 92m) 50% stake acquisition of Cimentos Apodi by Greece-based TITAN Cement Group is the largest inbound transaction in the sector YTD.
PERU: Financial Services deals up by 50%
Financial services transaction volume rose 50% in Peru between January and November 2016 over the same 11-month period in 2015, according to TTR data (www.TTRecord.com).
Eight transactions YTD have been inbound cross-border deals, compared to five in the 11 months ending 30 November 2015. The most recent deal in the sector was ACP’s sale of a 9.99% stake in Paraguay-based Fielco – Financiera El Comercio to New York-based investment fund WWB Capital Partners.
Latin America Ranking – 2016*
Financial Advisory – Year to Date (YTD)
Banco Itaú BBA maintains a healthy lead in TTR’s Latin America financial advisory ranking by volume and value with 46 transactions to the close of November together worth USD 32bn. Brazil’s top investment bank also led the chart a year ago with 42 mandates on deals worth a combined USD 17.8bn by the end of November. Banco BTG Pactual follows in second, as it did a year ago, its deal count down by two to 31, its aggregate deal value up 6% to USD 14.7bn. Banco Bradesco BBI is in third, as it was a year ago, but has increased deal volume by 76% and aggregate deal value by 150% from its 17 transactions worth USD 10.8bn to the close of November 2015. Banco Santander is up three positions in the chart in fourth, its deal volume rising from nine a year ago to 19 YTD, the aggregate value of its deals up 31% from USD 7.7bn to USD 10.1bn. BAML, in fifth, was not among the top 10 financial advisors in the region at the close of November 2015, nor was Citigroup, in sixth, BNP Paribas, in seventh, JPMorgan in eighth, or Morgan Stanley, in ninth. Vinci Partners landed the same number of deals and grew aggregate value 164% to USD 487m, but fell two places in the ranking to bring up the rear.
Baker & McKenzie leads TTR’s Latin America legal advisory ranking at the close of November, its 29 deal mandates nearly matching its 30 of a year ago, while the aggregate value of its deals is up 53% to date this year over the same period last. Jones Day follows in second, as it did a year ago, notwithstanding a decline in deal count from 20 to 14 and a 76% fall in the aggregate value of its deals to USD 654m. Clifford Chance is up four positions in the chart at third, its deal count increasing from six to 13, its combined deal value up 8% from USD 8.4bn to USD 9bn. White & Case gained two deals on its 10 of year ago and increased aggregate deal value by 127% but was bumped from third to fourth, nonetheless. Linklaters, in fifth, was not among the top 10 legal advisors in Latin America a year ago, nor was Cleary Gottlieb Steen & Hamilton, in sixth. Skadden, Arps, Slate, Meagher & Flom fell three places from fourth to seventh, despite maintaining the same deal count of nine and increasing the aggregate value of its deals 374% from USD 1.2bn to USD 3.8bn. Hogan Lovells, in eighth with seven mandates YTD, is tied by deal volume with Shearman & Sterling in ninth, and Norton Rose Fulbright, in tenth. Of the three, only Shearman & Sterling appeared among the top 10 a year ago, when it ranked fifth, with seven deals also, then worth USD 1.1bn combined, compared to USD 1.8bn in aggregate value a year later.
Brazil Ranking* – 2016
Financial Advisory – Year to Date (YTD)
Banco Itaú BBA dominates by deal volume in TTR’s Brazil financial advisory ranking at the close of November with 37 transactions worth a combined 24.6bn. Brazil’s leading investment bank had the same number of deals under its belt by this time last year, together worth USD 17.3bn then. Banco Bradesco BBI follows in second with 30 transactions, nearly double its 16 of a year ago when it ranked third by the end of November. Its deals are worth USD 27bn combined, representing a 150% increase from USD 10.8bn, putting Bradesco in the lead by aggregate value. Banco BTG Pactual was bumped from second to third, its deal count down by a single transaction, the combined value of those deals down 28% from USD 12.4bn to USD 8.9bn. BAML, in fourth, was not among the top 10 financial advisors in Brazil for the same 11-month period of 2015. Vinci Partners occupies the same fifth-place position it held at the close of November 2015, its deal count also on par at nine; its aggregate value is up 164% from USD 184m to USD 487m. Cypress Associates, in sixth with eight deals YTD, and Banco Santander, in seventh with six, were both absent from the chart a year ago. BR Partners, in eighth, has also advised on six deals YTD, in its case together worth USD 1.5bn compared to eight worth USD 347m at end-November last year when it ranked seventh. Rothschild occupies the same ninth place it held a year ago, its deal count down from six to five, the combined value of its deals up 3% from USD 8.2bn to nearly USD 8.5bn. JPMorgan holds the rear, also with five mandates in Brazil YTD, in its case worth a combined USD 6.5bn. The New York bank was not among the top 10 financial advisors in Brazil in the 11 months that ended 30 November 2015.
Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados has a healthy lead in TTR’s Brazil legal advisory ranking at the close of November, by volume and value, with 63 deal mandates on transactions worth a combined USD 25.2bn in the first 11 months of the year. The top M&A firm in Brazil climbed from second place in the corresponding period last year, when it’d advised on 48 deals together worth USD 10.9bn. Machado, Meyer, Sendacz e Opice Advogados climbed two positions from fourth, its deal count up from 41 to 50, its aggregate value down 73% from USD 13.3bn to USD 3.6bn. Pinheiro Neto Advogados led the chart at the close of November 2015 when it’d advised on 57 deals in the first 11 months of the year; the firm ranks third for the corresponding period this year, its deal volume down 14% to 49, the aggregate value of its deals up 68%, meanwhile, from USD 10.9bn to USD 18.3bn. Souza, Cescon, Barrieu & Flesch Advogados was bumped one position to fourth, despite adding five deals to its count of 44 a year ago to tie by volume with Pinheiro Neto. The firm is behind in the chart for its lesser aggregate deal value of USD 4.6bn. TozziniFreire Advogados ranks fifth with 41 deals worth a combined USD 8.6bn, up from ninth a year ago when it’d advised on 25 together worth USD 798m. Barbosa, Müssnich, Aragão fell one position to sixth, its volume down from 37 to 28, its aggregate value down 29% from USD 9.5bn to USD 6.7bn. Stocche, Forbes, Padis, Filizzola, Clapis, Passaro, Meyer e Refinetti Sociedade de Advogados, in seventh, was not among the top 10 legal advisors in Brazil by the close of November 2015. Veirano Advogados fell two positions from sixth a year ago to eighth, its deal count down from 36 to 26, the combined value of its deals growing 731% from USD 1.3bn to just shy of USD 11bn. Demarest Advogados fell from seventh to ninth in the ranking, its deal flow down 19% from 31 to 25, the combined value of its deals up 1,391% from USD 316m to USD 4.7bn. Lefosse Advogados, in tenth with 23 mandates YTD, was not among Brazil’s top 10 M&A firms at the close of November last year.
Mexico Ranking* – 2016
Financial Advisory – Year to Date (YTD)
BBVA continues to lead TTR’s Mexico financial advisory ranking with six mandates YTD together worth USD 3.3bn combined, versus four worth USD 869m a year ago when it also led the chart. Citigroup is up from last place at the close of November 2015 to second for the first 11 months this year, its deal count increasing fourfold from one. PC Capital, in third, is up one position while maintaining the same number of deals as in the 11 months ending a year ago. Deutsche Bank, in fourth with two deals, was not among the top 10 advisors in Mexico at the close of November 2015; the bank is now tied by volume with JPMorgan, in fifth, Morgan Stanley, in sixth, Lazard, in seventh and Credit Suisse Group, in eighth; the lot were also absent from the top 10 a year ago. Alfaro, Dávila y Ríos fell four positions to ninth and RIóN M&A is down eight positions in tenth. Both have also advised on two transactions YTD, the same tally of each in the first 11 months of 2015.
Creel, García-Cuéllar, Aiza y Enríquez leads TTR’s Mexico legal advisory ranking for the first 11 months of 2016, as it did for the corresponding period last year, despite losing two deals on its count and a 74% decline in aggregate transaction value from USD 13bn to USD 3.4bn. Galicia Abogados, in second, is up by one deal and up one place in the chart, the value of its 13 deals up 61% to USD 4.5bn on the USD 2.8bn its 12 represented at the close of November last year. Mijares, Angoitia, Cortés y Fuentes fell one place to third, its deal count down from 15 to eight, its aggregate value contracting 23% from 2.4bn to USD 1.8bn. Jones Day ranks fourth, as it did a year ago, its deal count also on par at eight, while its combined deal value is down 73% from USD 2.2bn to USD 584m. White & Case, in fifth, also holds to the same ranking of a year ago, its deal count down by one to seven, its aggregate value down 21% from USD 1.2bn to USD 973m. Ritch, Mueller, Heather y Nicolau, in sixth with six mandates YTD on deals together worth USD 1.8bn, was not among the top 10 a year ago, nor was Santamarina y Steta Abogados, in seventh with five worth USD 1.9bn combined. Von Wobeser y Sierra had the same five deals under its belt at the close of November 2015, jumping from tenth to eighth, nonetheless. The value of Von Wobeser’s deals is up 229% from USD 358m to nearly USD 1.2bn. González Calvillo Abogados ranks nine with four deals YTD; it did not place among the leading 10 at the close of November a year ago. Baker & McKenzie is down four places in the chart in tenth, also with four mandates between January and the close of November. The firm had advised on twice as many deals by the end of November a year ago, but its aggregate deal value is up 86%, notwithstanding, from USD 366m to USD 680m.
* TTR Rankings are generated with transactions announced or closed in 2016 year-to-date. The ranking includes sales and acquisitions of shares and of assets, creation of joint ventures, and Private Equity/Venture Capital investments. The legal advisor rankings for Brazil and Mexico take into consideration advisory services regarding domestic laws. All rankings only include deals where a company of the respective country was the target of the transaction. In the case of LATAM, it would be a Latin American country. The LATAM ranking does not specify the origin of the advisory law, so the filter only considers firms from the UK/US.
In case of a draw, the adopted criteria will be the following: if the draw is due to number of transactions, the total deal value prevails; if it is due to deal value, the number of transactions prevail. When a draw of both number of transactions and deal value occurs, the same position will be retained and the deals will be arranged alphabetically.