RIO DE JANEIRO, BRAZIL – According to the monthly report by Transactional Track Record and Datasite, mergers, and acquisitions in Latin America began the year with a sharp drop of 41.74% in total value, but an increase of 21.88% in the number of transactions compared to the first month of 2021.
Mergers and acquisitions (M&A for short) are transactions that involve the ownership of companies or other organizations, allowing them to increase or decrease their size and change their competitive position.
According to the report, as of January 2022, there were 234 announced and completed mergers and acquisitions in Latin America with a total value of US$5,565 billion.
“This activity is very important in the current economic and financial environment. There are several financial institutions that advise their clients on these matters, the figure of the financial advisor is already part of the business ecosystem,” explained Pilar Martínez Fariña, Senior Account Executive at BBVA.
Brazil leads the ranking of the most active countries in Latin America in January with a total of 176 operations, an increase of 61%, but registered a decrease of 49% in mobilized capital, which amounted to U$4,092 billion.
According to the study’s data, Brazil was the only country in the region that registered an increase in the number of operations.
It was followed by Mexico, with 20 transactions, with a 5% decrease in the number of mergers, but a U$447 million increase in the amount, 137% more than in the first month of 2021.
Meanwhile, Argentina climbed to third place with 17 transactions, displacing Chile, although the number of transactions fell 6% in January. However, mobilized capital increased by 61%, equivalent to around US$451 million.
Chile, in turn, ranked fourth among the Latin American countries with the most mergers and acquisitions, with 13 transactions, representing a 55% decrease in this category, and a 98% decrease in mobilized capital, which amounted to US$43 million.
Colombia also saw a decline in its activity in January, falling to fifth place with 11 transactions in the first month of the year.
The country recorded a 48% drop in transactions and mobilized capital of US$1,007 billion, down 55% compared to the same month last year.
Peru, meanwhile, remains in last place after recording only seven transactions, the same number as in January 2021, and a 99% drop in mobilized capital, down US$10 million.