According to TTR Data, in the first five months of 2024, the region recorded a total of 996 mergers and acquisitions, both announced and closed, for an aggregate amount of US$26 billion.
As of May, the Latin American market recorded a total of 996 mergers and acquisitions, both announced and closed, for an aggregate amount of US$26 billion, according to the most recent report by TTR Data and Datasite.
These figures imply a decrease of 26% in the number of transactions and 25% in their value, compared to January-May 2023.
As for May alone, a total of 149 mergers and acquisitions were registered in the month, both announced and closed, for an aggregate amount of US$ 6.16 billion.
Brazil leads in number of transactions
According to data recorded through May, by number of transactions, Brazil leads the ranking as the most active country in the region with 592 deals (with a decrease of 29%) and with a transaction value of US$ 16.13 billion (3% down). Mexico follows with 130 transactions (a decrease of 16%) and a 68% decline in volumes (to US$ 3.19 billion), compared to January-May 2023.
For its part, Chile fell , both in terms of number of deals (to 113, or 33% less) and mobilized capital (by 71%, to US$ 2.37 billion). Colombia also fell, registering 105 deals (a decrease of 2%) and an 8% decline in volumes (to US$ 2.19 billion), all in year-on-year terms.
Meanwhile, Argentina rose one place and it became the region's single country showing growth in terms of deal volumes --up by 235%, to US$ 3.05 billion), although the number of transactions fell, by 20%, to 66. Lastly, Peru decreases its activity and registers 48 transactions (16% down), with a 65% decline in their value (to US$ 1.34 billion).
Cross-border investor appetite by Latin American companies stands out in May, especially for deals in Europe and North America, where 26 and 22 transactions were carried out, respectively.
Meanwhile, the companies that carried out the most strategic transactions in Latin America come from North America and Europe, with 172 and 106 deals, respectively.
Private equity , venture capital and asset acquisitions
As of end-May 2024, a total of 71 private equity transactions were recorded, amounting to US$2.23 billion, which represents a downward trend in the number of transactions (-6%) and an increase of 24% in capital mobilized compared to the January-May period last year.
For its part, the venture capital segment recorded 252 transactions in the first five months of 2024 with an aggregate amount of US$ 1.93 billion, which implies a negative variation of 35% in the number of transactions and a 17% increase in their amount, both in year on year terms.
In the asset acquisitions segment, 175 transactions were recorded through May, valued at US$3.71 billion, which represents a 5% increase in the number of transactions and a 17% increase in their amount, compared to to the same period in 2023.
"In 2024, market expectations in Mexico and Latin America are good, as there seems to be a consensus that interest rates should begin to fall towards the end of the year. This phenomenon will probably generate good expectations, possibilities of leveraging a little more M&A transactions and, on the part of buyers, to be somewhat more flexible in raising valuations, which could lead to higher closings. This effect would surely be triggered in the last quarter of the year, so during the third quarter the volume of closings would not be so high," concluded Alexander von Griesheim, partner at 414 Capital Rión.
