M&A transactions executed by Latin American firms outside of the region in 2013 rose 40% year-on-year to US$36.284mn in volume, data provider Transactional Track Record (TTR) told BNamericas.

The deal-count also rose to 67 in 2013 from 60 the year before, reflecting a growing tendency for Latin American firms to look overseas for inorganic growth opportunities .

Latin American firms, particularly the multilatinas that have been investing regionally for years, are increasingly looking to take advantage of low prices in Europe, said TTR, while Spain and Portugal are especially attractive due to cultural and linguistic ties.

Last year was the first in which Latin American countries spent more on acquiring their Spanish counterparts than the other way round, said the Economist in a recent report.

This time last year BNamericas highlighted a wave of investment by Latin American banks in Spain, while the most notable of this year's overseas acquisitions was Brazilian telecoms operator Oi's (NYSE: OIBR) US$14.3bn bid for a 90% interest in Portugal Telecom (NYSE: PT) in October.

The relationship has not been entirely one way, however, as Latin America has helped cushion the blows dealt by Europe's struggling economies. Brazil accounts for almost a quarter of Santander's global profits while Mexico generates two-fifths of Spanish bank BBVA's income, said the Economist.

The volume of Latin America focused M&A deals carried out by companies from outside the region grew 38.0% in 2013 to US$115mn (690 deals), compared to US$71.6mn (635 deals) in 2012, according to TTR figures.

It would seem Latin America too remains an attractive region in terms of M&A, particularly for European firms looking for more dynamic growth opportunities than those offered closer to home, the data company said.

BN Americas - http://www.bnamericas.com/news/banking/latin-american-appetite-for-external-m-a-continues-to-grow