Iberian Market

Iberian Market - January 2014

January 2014

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SPAIN

In January 2014, the investment volume generated by the Spanish M&A market was EUR 10,44bn, which is superior to the volume generated in each of the previous 12 months. This was made possible by the number of large transactions that were signed, taking into account that the number of deals registered was as low as in August 2013. Nonetheless, there was a 12% increase compared with the same period last year; with 65 deals recorded.

Highlights, among the largest deals, include the sale by Telefónica of a 69,4% stake in Telefónica Czech Republic to Netherlands-based PPF Group; aiming to reduce its debt.

Private equity firms generated an investment volume of EUR 2,26bn; approximately ten times the amount generated in the same period last year. In addition, the number of deals tripled compared to January 2013, with fifteen deals recorded and mainly investments. On the other hand, venture capital firm's investment generated EUR 7m, which indicates a decrease compared to the same period last year.

Foreign-based acquirers continued the trend set in previous months for being particularly acquisitive in Spain. The United States, the United Kingdom and France were once again the most active acquirers. On the other hand, Spain-based companies continued their international expansion strategies, with acquisitions in Turkey, Mexico, South Africa, the United State, The Netherlands and Peru.

Regarding capital markets, in January there were no registered IPOs or capital increases in Spain. Nonetheless, highlights include and IPO carried out by US-based financial institution Santander Consumer USA, held by Banco Santander, through a public offering of 21,6% of the capital. The deal value was USD 1,80bn. With this transaction, Banco Santander reduced its stake in Santander Consumer USA to 60,7%.

PORTUGAL

In January 2014, the Portuguese transactional market registered 16 deals, which exceeded the number of transactions announced in the last three months. The investment volume generated was EUR 181m, compared with EUR 458m generated in the same period last year.

The technology subsector was the most active this month, in Portugal. Highlights include six investments carried out by Portugal Ventures, a state-owned venture capital firm, in Portuguese technology startups Auditmark, Giríssima.com, iM3DICAL, MyChild, PETsys Electronics and Wizdee.

On the other hand, Portuguese private equity firms were also particularly dynamic. Explorer Investments closed, this month, three relevant investments; the acquisitions of Multiflow, S. Roque and São Roque do Brasil, and Finieco.

Regarding the largest deals, highlights include the acquisition made by Grupo Nors (former Grupo Auto-Sueco) of Agronew, a distributor of farming equipment. The deal value was EUR 9,80m.

The interest shown by foreign-based acquirers in Portuguese companies decreased considerably in January 2014, with only one acquisition registered by a Japanese company. On the other hand, Portuguese companies continued to invest mainly in the Brazilian market, following their international expansion strategies. Highlights include the acquisition of Brazil-based São Roque do Brasil and Agronew by Portugal-based acquirers.

In January, there were no registered IPOs or capital increases in the Portuguese transactional market. However, it is estimated that in the next few months several important deals will be carried out, such as the public offering closure of Espírito Santo Saúde