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Latin American M&A market shows a 22% decline
Thursday, September 12, 2024 - 07:58
Reuters mercado M&A

As of August this year, 1,763 transactions have been registered, amounting to US$ 45,731 million. Peru and Mexico were the only countries with positive results in the Latin American mergers and acquisitions market.

As of August, the Latin American transactional market has recorded a total of 1,763 mergers and acquisitions, both announced and closed, for an aggregate value of US$ 45.731 billion, according to the most recent report by TTR Data and Datasite.

These figures represent a 22% decrease in the number of transactions and a 16% decrease in their value compared to August 2023.

In August, a total of 208 mergers and acquisitions were recorded, both announced and closed, for an aggregate value of USD 5.29 billion.

Transactions by Country

According to data recorded up to August, by number of transactions, Brazil leads the ranking of the most active countries in the region with 1,019 transactions (a decrease of 27%) and a 16% decrease in the capital mobilized (USD 25,464m). Mexico follows on the list with 234 transactions (a decrease of 8%) and a 5% increase in their value (USD 11,919m), compared to August 2023, which makes this country the only one with positive results in its value, compared to the other countries in the region.

Chile, for its part, fell in the ranking, with 205 transactions (a decrease of 25%) and a 45% drop in capital mobilized (US$ 6,101 million).

Colombia, for its part, fell one position in the ranking, with 163 deals (a 15% drop) and a 15% decrease in capital mobilized (US$ 2,734 million), in year-on-year terms.

Meanwhile, Argentina rose one place in the ranking and registered a 1% decrease in its mobilized capital (US$ 2,541 million) and presented 136 transactions (a 9% decrease year-on-year).

Finally, Peru increased its activity and recorded 109 transactions (an increase of 12%), making it the only country with positive results in the number of transactions. However, it recorded a 56% decrease in its mobilized capital (US$ 2,206 million).

Cross-Border Scope

In the cross-border area, the investment appetite of Latin American companies abroad stands out in August, especially in Europe and North America, where 47 and 44 transactions were carried out, respectively.

The companies that have carried out the most strategic transactions in Latin America also come from North America and Europe, with 276 and 192 deals , respectively.

Private Equity, Venture Capital and Asset Acquisitions

In August 2024, a total of 128 Private Equity transactions were recorded for US$ 4,374 million, which represents a downward trend in the number of transactions (-1%) and an increase of 26% in the capital mobilized, compared to the same period of the previous year.

The Venture Capital segment, for its part, has recorded a total of 433 transactions up to August with an aggregate value of US$ 2.964 billion, which implies a negative variation of 35% in the number of transactions and a decrease of 25% in their value, in interannual terms.

In the Asset Acquisitions segment, 313 transactions have been recorded up to August, for a value of US$ 7,773 million, which represents a 6% decrease in the number of transactions and a 7% increase in their value, compared to the same period in 2023.

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AméricaEconomía.com