Mexican M&A activity in April generated 21 deals, the same number of transactions seen in April 2016, while the capital involved in the nine deals with disclosed values reached US$1.92bn – a 440% increase year-on-year.

Despite the impressive monthly result, the April M&A data, reported by research firm Transactional Track Record (TTR), brings the four-month total for the year more in line with 2016 in the same period.

In January-April, Mexico saw 87 M&A deals, 34 of which had disclosed values totaling US$8.67bn. This is a 4.82% increase in the number of transactions and a 2.46% decrease in total disclosed values.

Six of the 34 deals with disclosed values were worth more than US$500mn. Ten were valued between US$100mn and US$500mn, while the remaining 18 were valued at less than US$100mn.

The finance and real estate sectors showed the highest amount of activity, generating 15 and 12 deals, respectively.

STAND OUT DEALS

With a disclosed value of US$1.00bn, the largest deal closing in April involved Puerto de Liverpool's acquisition of budget-oriented department store chain Suburbia from Walmart de México.

However, TTR chose to highlight RLH Properties' purchase of three luxury resorts from OHL Desarollos on Mexico's Riviera Maya for US$150mn as its transaction of the month.

"The transaction has been one of the most noteworthy of the month for Mexico ... having registered one of the highest sums transferred," Marcela Chacón, Latin America business analyst for TTR, told BNamericas.

"The participation of the legal advisors also influences the selection of this highlighted transaction, as it indicates the experience of these legal firms as great advisors in transnational operations."

The firms Linklaters Spain; Ritch, Mueller, Heather y Nicolau; Pérez-Llorca; and Creel, García-Cuéllar, Aiza y Enríquez provided legal counsel for the deal.

RLH Properties' acquisition of the resorts in the Mayakoba development in Quintana Roo opened an eastern expansion for the company, which also raised funds in April by selling about 27% of its stock for US$127mn.

INTERNATIONAL M&A

Looking at cross-border activity, Mexican firms have shown almost exclusive interest in the US and Colombia. Deals made in the US held a total reported value of US$2.41bn in the first four months.

The US, Spain and Canada showed the greatest interest in Mexican assets, closing 10, 7 and 4 deals, respectively.

Mexico has been involved in nine private equity deals in the four-month period, down 25% compared to the same period of 2016. Meanwhile, venture capital deals are up 22% through April, involving US$72.2mn in two reported transactions.

Source: Business News Americas / BN Americas - Chile