Mergers and Acquisitions in Latin America decreased 10% so far in 2022

Cut to the third quarter of the year, the market for mergers, acquisitions and investments in Latin America shows a decrease of 10% in terms of transactions, reaching 2,455 movements. As for the volume traded, this shows a decline of 38.34% to 74,015 million dollars. The industry is led by M&A with 1,287 movements for 46,710 million dollars.

A total of 129 transactions of ‘Private Equity’, of which 53 have an amount of 7,208 million dollars. This represents a 16% decrease in the number of transactions and a 36% decrease in volume.

As soon as ‘Venture Capital’791 transactions have been carried out, of which 617 add up to 6,936 million dollars, which represents a decrease of 3% and 54%, respectively.

When the number of movements by country is analyzed, Brazil leads the ranking as the most active in the region with 1,699 offers and a decrease of 39% in the capital mobilized in interannual terms for 46,020 million dollars. Mexico follows in the list, with 310 transactions and a decrease of 24% in its amount: 11,365 million dollars.

Chile moves up one position in the list with 209 transactions and a 24% decrease in mobilized capital of 9,665 million dollars. Colombia falls in the ranking but is the only country in the region that registers an increase in the number of transactions, with which it registers 187 transactions and a 21% drop in mobilized capital (7,518 million dollars).

For its part, the 143 transactions that occurred in Argentina represent a decrease of 4% and a decrease of 4% in its amount (3,795 million), compared to the same period of 2021. Peru has registered 83 transactions and a decrease of 37% in its mobilized capital.

In the field of cross-border negotiations, the investment appetite of Latin American companies abroad to date stands out. third quarter of 2022especially in North America and Europe, where 69 and 56 transactions have been carried out, respectively.

The companies that have carried out the most strategic transactions in Latin America come from North America, with 442 operations; Europe, with 319; and Asia, with 66.

Featured Transaction

In the third quarter of 2022, Transactional Track Record has selected as an outstanding transaction the one related to the consortium formed by EIG Global Energy Partners and Fluxys, which has closed the acquisition of 80% of the Chilean GNL Quintero from Enagás Chile (45.4%) and Ontario Municipal Employees Retirement System (OMERS) (34.6 %).

The transaction, valued at 1,154 million dollars, has had the legal advice of Linklaters; Barros & Errazuriz; White & Case; Warrior Olives; Baker McKenzie; Tortoiseshell; and by Milbank US. On the financial side, the transaction has been advised by Citigroup Global Markets.