Latin America M&As Decline 46% in First Quarter

Brazil pulls down results, while Mexico, Chile and Panama see a boost.

BY JOACHIM BAMRUD

Mexico, Panama and Chile led the way in announced M&A deals in Latin America in the first quarter, helping offset a significant decline in Brazilian M&A activity.

Constellation Brands’ $2.9 billion acquisition of Grupo Modelo unit Compañía Cervecera De Coahuila was the largest announced M&A deal in Latin America in the first quarter, according to Thomson Reuters. It was also among the top six deals in the emerging world.

The other leading deals include Bancolombia’s purchase of HSBC Panama and US-based MetLife’s acquisition of Chilean pension fund AFP Provida.

Meanwhile, the first quarter further cemented the recent trend of M&A’s being driven by Latin American companies. Five of the top ten deals in the quarter had Latin American companies as acquirers, with the rest distributed among companies from the United States, the United Kingdom, Germany and Singapore. Both Brazil and Mexico had two companies each among the acquirers, the same as the united States.

“It is important to note, that … deal activity in the region is being driven largely by the rise of Latin American multinationals, that now have the opportunity to go from target to acquirer,” says Sergio Galvis, the head of the Latin America Group at US-based Sullivan & Cromwell, which ranked as the top legal advisor on announced Latin American M&A’s in the quarter, according to Thomson Reuters.

The number of announced Latin American deals reached 318, a 28.2 percent decline, while their combined value reached ...

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Keywords: AB InBev, AFP Provida, Baker & McKenzie, Bancolombia, BBVA, Constellation Brands, Grupo Abril, Grupo Modelo, HSBC, Linklaters, MetLife, Skadden, Sullivan & Cromwell, Wise Up