The Latin American M&A market was particularly dynamic in the third quarter of 2013, with several relevant deals registered. The total investment volume in the region increased considerably this quarter compared to 2Q13, escalating to some US$120bn from US$60.9bn, according to a new report by Transactional Track Record (TTR). Brazil was the most active country in 3Q13 with 232 deals both announced and closed, followed by Mexico with 58 and Chile with 43. Deal highlights include the takeover offer launched by Mexico-based América Móvil (NYSE: AMX), controlled by Carlos Slim, to acquire a 72% stake in KPN, a Holland-based telecommunications company. With this deal, América Móvil attained 100% of KPN's capital for US$9.60bn. Furthermore, US insurer MetLife (NYSE: MET) acquired through a takeover offer a 90.4% stake in AFP Provida (NYSE: PVD), a Chile-based pension funds management company. The deal value was some US$1.84bn and the seller in this deal was Spanish bank BBVA (NYSE: BBVA). CROSS-BORDER DEALS In 3Q13, Latin American companies intensified their investments abroad, with several important acquisition announcements. Highlights include the acquisition made by Argentina-based Corporación América of ATA Italia, an Italy-based company that manages Milano Linate airport. The deal value was not disclosed. On the other hand, Spain-based Enagás and Asia-based Oman Oil Gas acquired a 20% stake in Chile-based GNL Quintero, attaining 40% of the capital. The transaction's value was US$180mn and TTR named it "deal of the quarter." In addition, Latin America's attractiveness continues to draw the attention of foreign-based companies, which look for ways to expand and grow. US-based acquirers follow a trend set in previous months for being the most acquisitive companies in Brazil. Highlights include US-based Abbot Laboratories' acquisition of Brazil-based Vistatek Produtos Óticos for an undisclosed sum. European companies also set their sights in Latin America, with several strategic acquisitions. Worthy of mention was the acquisition made by Efron Consulting, a Spain-based consultancy firm that offers technology services, of Consult Soft, a Colombia-based consultancy firm that offers software implementation services. The deal value was not disclosed. PRIVATE EQUITY, VENTURE CAPITAL In January-September, venture capital firms were particularly active in the private equity sector and the third quarter was no exception. Brazil-based TOTVS Ventures invested US$730,000 in Intelie, a technology developer of solutions to analyze data in real time. In addition, TOTVS Ventures acquired a minority stake in Agendor, a developer of online commercial platforms, for US$150,000. Furthermore, private equity fund Aurus Capital, through its investment vehicle Aurus Bios, acquired a minority stake in Chile-based biotechnology company Phytotox by subscribing a capital increase of some US$2mn. In addition, one of the largest investments in 3Q13 was the acquisition announcement by US-based KKR of Positivo Educacional, a Brazil-based education company for US$874mn, according to TTR.

Source: Business News Americas / BN Americas - Chile