Value of LatAm M&A deals trending upward

M&A activity in Latin America showed further dynamism in April, when disclosed values for deals soared 223% to US$14.6bn.

The amount includes the values disclosed for 60 of the month's 146 transactions, according to research firm Transactional Track Record (TTR). The number of deals was 7.01% lower than in April 2016.

TTR reported 668 deals in the first four months of the year, 257 of which had disclosed values for a total of US$59.3bn. The data reflects a 4.70% increase in the number of deals across the region and a 124% increase in the total disclosed value of the deals.

Brazil continued to be the most active market in January-April with 342 operations (a 5% y-o-y increase), as well as a 292% surge in reported deal value (US$35.7bn).

Chile counted 87 transactions, a 28% increase. However, the disclosed value of the deals (US$3.01bn) was 53% lower y-o-y. Increasing 5%, Mexico tied with Chile with the same number of operations, but it saw deal value fall 2% to US$8.67bn.

Argentina reported 79 operations and total deal value of US$3.10bn, up 25% and 75%, respectively.

The number of transactions in Colombia declined 19% to 44, though the disclosed value of the deals rose 281% to US$11.8bn.

TTR placed Peru last in the ranking for M&A activity, with the number of deals falling 30% to 35, and the reported transaction value down 37% to US$1.15bn.

Latin American investors generated only four deals outside of the region – two in North America and one each in Europe and Asia. North American and European firms were far more active in Latin America, completing 25 and 19 transactions, respectively.

Private equity continued its weak run with the number of deals falling 45% y-o-y to 37 in January-April, while the reported deal value fell 65% to US$996mn. Conversely, venture capital deals were up 44% to 95, with transaction value jumping 57% to US$283mn.