The number of transactions fell 29% from February 2016, building onto a two-month trend, as reported by Transactional Track Record (TTR). The disclosed values for the first two months of 2017 totaled US$27.1bn in 97 operations, up 87%, while the number of operations so far this year has fallen 8.36% to 274. 

Brazil held the top spot for merger and acquisition deals in February with 133 operations (down 11%), with reported values totaling US$13.9bn (up 245%). Iron ore miner Vale's incorporation of holding company Valepar, a deal reported to be valued at around US$1.92bn, was the largest of the month. 

Chile followed in February with 42 operations (up 27%) and a 61% drop in reported deal values to US$869mn. 

TTR highlighted energy investment manager Aerio Chile's acquisition of natural gas distribution firm Electrogas, picking up 42.5% of the firm's shares for US$180mn. 

Energy M&A activity is showing strength in the region. 

Francisco Macías, a partner at major Argentine law firm Marval O' Farrel & Mairal, stressed the opportune time for deals in energy in an interview with TTR, citing areas such as natural gas distribution and transportation and renewable energies. 

"Business opportunities exist for the natural gas processing and industrializationsector," added Macías. 

Mexico continued to show weakness in February, showing a 58% drop in reported values for deals to US$2.14bn. 

Looking at cross-border activity, there was strong interest from Latin America for acquisitions in the US and Canada, closing six operations in the month, whereas Europe and Asia attracted only one such deal each. 

The US and Canada completed nine acquisitions in the region, as did Europe, while Asia produced only one. 
 

Source: Business News Americas / BN Americas - Chile