TTR In The Press

Business News Americas / BN Americas

July 2013

M&A activity in Latin America rises slightly in H1 - Regional

M&A in Latin America slightly increased its activity during the first half of 2013 compared with the same period last year both in number of deals and volume invested.

According to a report by Transactional Track Record (TTR), there were 383 deals closed and announced in 1H13, up from 377 in the same year-ago period, with volume rising 0.4% to US$60.9bn.

Brazil was by far the largest market in terms of deals with 222. However the biggest deal of this year's first half was the acquisition a 50% stake in Grupo Modelo, a Mexico-based manufacturer of the famous Corona beer, by Belgium-based AB InBev at some US$20.1bn.

The period's highlights also include the financial and insurance sector with several relevant deals, such as the US$2.1bn purchase of HSBC Panama by Colombia's largest bank Bancolombia (NYSE: CIB), as well as the closing of Principal's (NYSE: PFG) US$1.5bn takeover offer to acquire a majority stake in Chilean pension fund manager AFP Cuprum.


The cross-border sector was particularly active during 1H13 in the Latin American transactional market.

The region's investment attractiveness is producing an increase in acquisitions by foreign companies, mainly European. These companies see a growth opportunity in the region as a way of coping with the economic difficulties in Europe as shown by the Grupo Modelo - AB InBev deal, according to TTR.

US companies also set their sight on Latin America, continuing a trend set in previous months, with several relevant deals registered.

US insurer MetLife (NYSE: MET) agreed to buy a 64.3% stake in Chile's largest private pension fund manager AFP Provida (NYSE: PVD) for some US$2bn.

Although less active, highlights also include acquisitions made by Latin American companies abroad, such as Chilean lender Bci's announcement of the acquisition of US-based City National Bank of Florida for US$883mn.

Business News Americas -

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