Latin American M&A activity falls for second consecutive month

The number of mergers and acquisitions (M&A) in Latin America fell year-on-year for the second consecutive month in February.

There were 107 M&A deals in February this year, down from 115 in the same month last year. There was a similar decline in January this year to 135 deals from 140 in January 2014, according to a report by research firm TTR.

Despite the drop in the number of deals, the total value of M&A transactions in Latin America rose 27.3% year-on-year to US$11.11bn in February.

The value of deals in Brazil soared to US$8.03bn in February, from US$716mn in the same period of last year, due principally to two major transactions: Rumo Logística's US$3.83bn merger with América Latina Logística, and UK-firm British American Tobacco's purchase of Souza Cruz for US$3.49bn.

Meanwhile, according to the report, the value of transactions fell in all the other countries included in the study - Argentina, Chile, Colombia, Mexico and Peru.

Mexico led the way in terms of local firms looking abroad for M&A opportunities, with 8 of the 17 transactions involving companies looking beyond their borders.

Mexican firms acquired or merged with companies in the US, El Salvador, Nicaragua, Honduras, Chile, Costa Rica, and the UK, according to the report.

Meanwhile, there were 34 transactions involving acquisitions by foreign companies in Latin American countries, with Brazil the focus of 16 of those deals.

The most active sectors in Brazil were internet and technology, accounting for 13 and 8 transactions in the country, respectively.