M&A activity in Mexico slowed further in November, recording only 18 transactions, 12 of which reported deal values totaling US$667mn, according to research firm Transactional Track Record (TTR).

November activity reflected a 38% decline in the number of operations from November 2017 and a 77% drop in reported deal value.

Mexico recorded 294 M&A operations from January to November, with 127 of these disclosing price tags totaling US$12.2bn, reflecting a 3.5% year­on­year increase in the number of transactions but a 53% drop in deal values, said TTR in a report.

After a strong start to 2018, M&A activity has been in steady decline with the July election signaling a change in the government. The wait­and­see posture within the business community may be drawing to a close with investors seeking opportunities now that policy signals are emerging from the government of President Andrés Manuel López Obrador, who took office December 1.

Despite uncertainty this year, Interest from US firms in Mexican properties has not abated, making 48 acquisitions in Mexico from January to November, up 9.1% year­on­year.

Mexican tech properties have also seen strong activity this year, being targeted for 20 inbound acquisitions in January­November, an increase of 122%.

Of the 127 M&A operations disclosing price tags in the first 11 months, 100 were low­market value (less than US$100mn), 21 were mid­market (between US$100mn to US$500mn) and only six were valued above US$500mn, according to TTR.

Barring a sudden turnaround this month, 2018 looks to be by far the slowest in years with respect to high value deals. There were 14 deals valued above US$500mn in 2017, 15 in 2016, 20 in 2015 and 18 in 2014.

Private equity and VC

There were 28 private equity transactions valued at US$2.38bn from January to November, which represented 26% fewer deals y­o­y and a 40% decline in equity values.

In the same time period, 62 venture capital operations valued at US$598mn were recorded, up 38% and 63%, respectively, in terms of number of transactions and mobilized capital.

Source: Business News Americas / BN Americas - Chile