TTR In The Press
Business News Americas / BN Americas
September 2017, James Young
Outbound deals boost Mexican M&A activity in August
- M&A activity in Mexico picked up in August after a lackluster first seven months of 2017, generating 29 transactions, 15 of which disclosed values totaling US$3.87bn.
As noted in a report from research firm Transactional Track Record (TTR), the August tally reflected a 16% increase in the number of transactions in August 2016 and a 125% increase in reported values.
The strong movement of capital was supported by two major outbound acquisitions: Mexichem's acquisition of Israeli irrigation firm Netafim for US$1.52bn and Mexican dairy giant Lala's purchase of Brazil's Vigor Alimentos for US$1.82bn.
Adding in August activity, Mexico has seen 189 transactions in 2017 down 2.07% from the same period last year, and 77 of these deals reported values totaling US$11.8mn, down 11.2% yearonyear.
Of these, 56 operations were small market (valued at less than US$100mn); 15 were midmarket (US$100mnUS$500mn); and six were valued at more than US$500mn.
TTR noted that the sectors seeing the strongest activity in the first eight months of 2017 were finance/insurance and real estate, both recording 28 transactions in the period.
From January to August, Mexican firms demonstrated the strongest interest in outbound deals targeting the US and Colombia, carrying out 14 and 6 transactions, respectively. Deals targeting US properties amounted to US$2.65bn in the period.
Firms from the US, Spain and the UK produced the strongest M&A activity targeting Mexico properties, resulting in 23, 15 and 7 operations, respectively.
Meanwhile, there were 27 private equity deals in Mexico through August, involving 10 that disclosed a total of US$1.96bn in value.
This reflects a 29% increase in the number of operations but a 33% drop in total capital in private equity deals, compared to the same period of 2016.
VC activity over the first eight months of the year has been strong with a 65% increase in the number of deals (33) with a 428% increase in mobilized capital (US$392mn) in the eight deals with disclosed values.
TTR also noted there have been four IPOs on the Mexican stock market (BMV, pictured right) and one growth capital operation from January to August, where the US$1.78bn was raised in the initial stock offerings and US$251mn injected with the growth capital investment.
Source: Business News Americas / BN Americas - Chile
