According to TTR Data, asset acquisitions increased by 80% in the first half of the year.
The Latin American transactional market has registered in the first half of 2024 a total of 1,242 mergers and acquisitions, between announced and closed, for an aggregate amount of US$ 33,572 million, according to the most recent report by TTR Data, in collaboration with Datasite and AON.
These figures represent a 26% decrease in the number of transactions and a 16% decrease in their value, compared to the figures recorded in the first half of 2023.
PRIVATE EQUITY AND VENTURE CAPITAL
In the first half of 2024, a total of 85 Private Equity transactions have been recorded, of which 31 have an aggregate non-confidential amount of US$2.53 billion.
This represents an 8% decrease in the number of transactions and a 1% decrease in their amount, compared to the same period in 2023.
Regarding the Venture Capital segment, in the first half of the year, 314 transactions have been carried out, of which 253 have an aggregate non-confidential amount of US$ 2,318 million, which represents a 37% decrease in the number of transactions and a 24% decrease in mobilized capital, in year-on-year terms.
ASSET ACQUISITION
In the first half of 2024, a total of 210 asset acquisition transactions have been recorded , of which 96 have an aggregate non-confidential amount of US$6,708 million.
This represents an 11% decrease in the number of transactions and an 80% increase in their amount, compared to the same period in 2023.
RANKING OF TRANSACTIONS BY COUNTRY
In 2024, by number of transactions, Brazil led the ranking of the most active countries in the region with 747 deals (27% decrease) and a 3% decrease in mobilized capital (US$ 19,957 million), in year-on-year terms.
Next on the list is Mexico, with 162 transactions (decrease of 14%) and with a 42% decrease in their amount (US$ 5,849 million), compared to the same period last year.
For its part, Chile rises in the ranking , with 138 transactions (a decrease of 37%) and with a 61% decrease in mobilized capital (US$ 3,784 million). Colombia, for its part, drops in the ranking , with 124 transactions (8% decrease), and with a 10% decrease in mobilized capital (US$2,263 million).
Meanwhile, the 84 transactions that occurred in Argentina represent a 23% decrease in the number of transactions and a 213% increase in their amount (US$ 3,097 million), compared to the same period last year, making it the only country with positive results in its capital mobilized in the region.
Peru, for its part, has registered 63 transactions (11% decrease) and a 65% decrease in its mobilized capital (USD 1,463 million), in year-on-year terms.
CROSS-BORDER SCOPE
In the cross-border area, the investment appetite of Latin American companies abroad stands out until the first half of 2024, especially in Europe and North America, where 34 and 30 transactions have been carried out, respectively.
For their part, the companies that have carried out the most strategic transactions in Latin America come from North America, with 206, Europe (134), and Asia (47).
FEATURED TRANSACTION
For the first half of 2024, TTR Data has selected as a notable transaction the one related to China Southern Power Grid International Hong Kong, an entity dedicated to investing, building and managing electricity networks based in Hong Kong, which has completed the acquisition of 100 % of Enel X Perú and 83.15% of Enel Distribución Perú to Enel Perú, a subsidiary of Enel Américas.
The transaction, valued at US$3.1 billion, has received legal advice from Rebaza, Alcázar & De Las Casas, Hogan Lovells Italy, A&O Shearman China and Miranda & Amado Abogados. On the part of Acquisition Finance , the deal has had the legal advice of Philippi Prietocarrizosa Ferrero DU & Uría Perú and King & Wood Mallesons China.
On the financial side, the transaction has been advised by JP Morgan and Morgan Stanley.
RANKING OF FINANCIAL AND LEGAL ADVISORS
The report publishes the 2024 financial and legal advisory rankings of mergers and acquisitions ( M&A ), Private Equity, Venture Capital and Capital Markets transactions in Latin America, where the activity of the notable firms is reported by number of transactions and for its amount.
DEALMAKERS Q&A WITH AON
TTR Data has exclusively interviewed Pedro Costa, leader of M&A and transactional solutions at AON, to find out the outlook for the Mergers and Acquisitions market in 2024: “Although a little flexibility has been achieved in terms of financial recovery, political changes and uncertainties always influence investors' decisions.
Risks are generally perceived as opportunities, but when considering the current situation in Latin America, being cautious will be key to obtaining better returns.
Depending on the economic recovery, said interest rates and inflation, it can be concluded that stability will be achieved; However, due to the political conflicts and uncertainties that have taken place recently, caution should be exercised regarding the expectation of M&A recovery.”
