M&A Watch: LatAm sees fewer but bigger deals

Latin America recorded 151 M&A operations in January with 56 disclosing deal value for a total of US$7.49bn, according to research firm Transactional Track Record (TTR).

The numbers represent a decline of 8.5% in the number of transactions compared to January 2018, but a 17.2% increase in deal value.

Last month's activity continued a regional trend of fewer but larger deals seen throughout 2018, which saw a 6.4% year-on-year decline in the number of deals to 2,137 but a 166% increase in reported deal value.

Brazil led the region in deal activity last month, producing 70 M&A operations, 14% less than in January 2018 and down 8% in terms of total reported deal value (US$2.56bn).

Chile followed with 26 operations, a 73% y-o-y increase, and a jump of 547% in reported deal value (US$1.30bn).

Mexico, usually the second most active country in the region, saw 23 operations, 18% fewer than a year before, though total reported deal value advanced 40% y-o-y to US$1.72bn.

Argentina recorded 15 operations in January, down 21% y-o-y, with a 74% deal value drop to US$812mn.

Colombia saw 15 operations last month, 21% fewer than in January 2018, with a 74% decline in deal value to US$69mn. TTR noted that Peru fell to the bottom of the list, seeing only 10 operations in January, down 9% y-o-y, with deal value falling 57% to US$724mn.

Cross-border deals

Looking at cross-border activity, outbound deals from Latin America were focused in North America, where four transactions took place in January, though there was one outbound deal targeting a European property.

Inbound deals in Latin America primarily came from North America and Europe, with 25 and 22 M&A deals, respectively.

Private equity and VC

Latin America saw five private equity deals in January, of which three recorded a combined amount of US$1.17bn, representing a 62% y-o-y decrease in the number of transactions and a decrease of 39% in capital raised.

TTR reported 16 venture capital deals in Latin America last month, 14 of which reported combined capital moved of US$93.3mn. These correspond to a 43% y-o-y decrease in the number of transactions and a 74% decline in terms of capital.