Both figures are in comparison with the same period of 2019, and reflect the adverse economic effects of the COVID-19 pandemic as Latin American countries have endured six months of lockdown, and where countries such as Argentina, Colombia and Peru still have restrictions in place.

According to the latest monthly regional M&A report by Transactional Track Record (TTR), the region saw a total of 1,284 M&A deals to August of this year, while combined values totalled $34.2 billion. 

Brazil leads the ranking by number of deals so far this year, with a total of 792, a 16-per cent year-on-year drop, totalling $21.3 billion, which is a 51-per cent drop on the same period of 2019.

Mexico is in second place, with 183 operations totalling $5.20 billion, which represent declines of 12 per cent and 41 per cent respectively, followed by Chile, which recorded 117 deals, a 33-per cent drop, worth a total $2.67 billion, which is a 57-per cent drop on the same period of 2019.

Colombia follows, rising one place in the rankings to displace Argentina, with 89 operations totalling $3.52 billion, which are a 41 per cent and 53 per cent decline, respectively.

Argentina saw a 26-per cent decline in the number of deals carried out so far this year, to 85, while overall deal value dropped by 51 per cent to $1.38 billion, while Peru saw a 47-per cent drop in the number of deals, to 49, for a total $736 million, which is a 72-per cent drop on the values reported during the same period of last year.

Commenting on the slump in transactions for the TTR, Eduardo Campos (pictured), a partner at Peruvian consultancy firm APOYO Consultoría and a member of Oaklins International law firm, was upbeat however, echoing many analysts' and lawyers' opinion that M&A activity will pick up as the region emerges from lockdown and companies seek to offload assets to enhance their liquidity.

“We feel that activity is reactivated. Financial and strategic investors are looking for opportunities to grow in Peru and we are reactivating other processes as interest abroad is also beginning to reactivate," he said.

"We expect a greater reactivation towards the fourth quarter of the year and especially at the end of the first quarter of 2021, hand-in-hand with a greater opening of international flights and greater control of the pandemic. The latter depends on how the health crisis unfolds, the worsening of which may generate potential additional restrictions with an impact on economic activity.”

Source: Iberian Lawyer - Spain