TTR In The Press
Business News Americas / BN Americas
November 2013
M&A volume in Latin America more than doubles in October
In October, the Latin American M&A market recorded a decrease in the number of deals from the previous month (135 compared to 150). However, the investment volume more than doubled compared to September to US$35.7bn due to several large deals, Transactional Track Record (TTR) said in a report.
Highlights include a possible merger: Brazilian operator Oi (NYSE: OIBR) will acquire Portugal Telecom (NYSE: PT) for US$14.5bn. Regarding countries, Brazil-based acquirers continue to be the most active with 79 deals, followed by Chile with 16, which outshined Mexico with 15 deals this month.
One of the most active players was Mexico-based Grupo Financiero Banorte. The group completed the purchase of 49% stakes in Mexican insurer Seguros Banorte Generali and in life annuity provider Pensiones Banorte Generali from Italian insurer Generali for a total US$858mn.
In October, cross-border deals registered approximately 50% of the total deals in the Latin American market. Foreign acquirers continued their internationalization and expansion strategies in this region, following the tendency of the last ten months.
US-based acquirers were the most active. Stanley Black & Decker, a manufacturer of work tools, acquired Emirian, an Argentina-based manufacturer of abrasive products, for some US$80mn. European companies also continue to show their interest in the region. France-based RCI Banque, a car financing company, acquired a 15% stake in NR Finance México for an undisclosed sum.
Similarly, Latin American companies made acquisitions abroad. Argentina-based Globant acquired an 86.3% stake in Huddle, a UK-based software developer, and Bancolombia (NYSE: CIB) closed the purchase of a 40% stake in Guatemala's Agromercantil.
Furthermore, Bancolombia's acquisition of UK banking giant HSBC's (NYSE: HBC) Panamanian unit was declared "the deal of the month" by TTR.
PRIVATE EQUITY, VENTURE CAPITAL
Grid Investments invested in Brazil-based online platform Pagar.me and in Belgium-based Camargus, a technology developer of image transmission.
Highlights also include the acquisition agreement made by US-based private equity firm Capital International Private Equity Fund VI (CIPEF VI) of a 27% stake in Chile-based Tanner Servicios Financieros through a US$200mn capital increase.
In addition, Mexican private equity firm Davinci Capital acquired Reid México, a manufacturer of plastic containers, held by Consolidated Container Company (CCC), which is controlled by US-based fund Bain Capital.