Latin America produced 125 M&A deals in January, 26.5% fewer than a year before, largely due to a slower start for regional M&A leader Brazil, despite a strong start in Mexico and other key markets.

Likewise, total reported deal value was off 33.8% year­onyear, where 64 transactions disclosed valuation totaling US$5.29bn, according to research firm Transactional Track Record.

The region's two largest markets were on opposite tracks last month with total disclosed deal values up 80% y­o­y in Mexico and down 67% y­o­y in Brazil.

Meanwhile, reported values shot up in Chile (+535%), Argentina (+126%), Peru (+777%) and Colombia (+889%), suggesting deal making had a strong start to the year for most markets.

Brazil, nevertheless, carried the biggest deal of the month, with steelmaker Gerdau selling four US wire­rod milling operations in the US to Commercial Metals Company (CMC) for US$600mn.

Goldman Sachs handled the financial advising for that deal for Gerdau with legal counsel from Simpson, Thacher & Bartlett.

Brazil also led in number of transactions for January, recording a total of 56 operations (­28% y­o­y) and total reported deal value of US$2.18bn. Mexico followed with 25 operations (+33%) with disclosed values totaling US$1.58bn.

Argentina jumped to number three in the ranking of the month with 20 transactions (+33%), moving a total reported value of US$699mn. Chile recorded 14 operations (­30%) with reported values of US$209mn.

Peru saw fewer transactions year­on­year at 9 (­47%); however, bigger ticket deals brought disclosed values up to US$910mn. Colombia saw 8 operations last month with total disclosed values of US$183mn.

In terms of cross­border dynamics, outbound deals were primarily focused on US assets, producing four deals in January, in addition to three operations targeting Europe.

There were 14 inbound M&A deals from US and Canadian firms, and European firms targeting Latin American assets produced 14 operations, as well.

Private equity and VC

The region saw five private equity deals in January, three of which reported raising a total of US$606.5mn in capital. This reflects a 67% drop in the number of equity operations but a 55% increase in capital moved.

There were 23 venture capital transactions in the month, 14 of which reported total capital of US$340mn. This represented a 5% increase in the number of deals and a 170% increase in the disclosed amounts.

Source: Business News Americas / BN Americas - Chile