Mexico saw a solid rebound in M&A activity in the first quarter this year with 75 operations, 31 of which reported deal values totaling US$5.95bn, according to research firm Transactional Track Record (TTR).

The results reflect a 15.4% increase in the number of transactions over 1Q17 and a 53.1% jump in reported deal values; however, the comparison comes against a period of deep investor uncertainty surrounding the then­incoming US administration and negative rhetoric toward US­Mexico trade policy.

Of the 31 deals that disclosed values, TTR classified 22 as small market with amounts below US$100mn, six were mid­market (between US$100mn and US$500mn) and three were large market, valued above US$500mn. The large­market deals were valued at a total of US$3.59bn.
With respect to sector­specific activity, finance and/or insurance properties saw the most activity, generating 11 deals, followed by real estate sector deals with nine operations. Both the technology and oil & gas sectors saw seven deals each.

Biggest transactions

The largest deal of the quarter involved media outlet Televisa's cash and equity deal to shed its 19% stake in Spain's Imagina Media Audiovisiual to one of China's leading private equity groups Orient Hontai Capital. The deal generated US$1.26bn for Televisa, according to TTR, as the old­school broadcasting giant struggles to adapt to a market flooded by popular streaming subscriber services.

Involving most US properties, the second largest deal involved Fidelity National Financial's acquisition of Stewart Information Services' holdings, including Stewart Title Guaranty de México, for around US$1.2bn.

The third large­market deal, Mexican petrochemicals firm Alpek in collaboration with Indorama and Far Eastern, organized a stock purchase worth US$1.12bn of M&G USA's holdings in an integrated PTA­PET plant under construction in Corpus Christi, Texas.

Cross­border activity

Outbound deals from Mexico primarily targeted US properties, involved in eight of the quarter's transactions. The total disclosed values of US outbound deals reached US$243mn.

Inbound deals to Mexico primarily came from the US and Spain, involved in nine and three operations, respectively. Disclosed inbound deals from the US had a total value of US$1.3bn.

VC & Private Equity

TTR reported a total of seven private equity deals taking place in the first quarter with total disclosed valuations of US$1.27bn. This represents a 13% drop in the number of deals from 1Q17, but a whopping 4,126% increase in the total capital mobilized in the quarter's deals.

There were 18 VC deals with a total value of around US$176mn in the first three months of 2018. This represented a 50% increase in the number of deals and an impressive 4,000% increase in the total capital raised.

 

Source: Business News Americas / BN Americas - Chile