LatAm M&A Trends Report FY 2021

LATAM M&A

Brought to you by the M&A Community in association with MergerMarket. 

The devastating impact of Covid-19 was succeeded by a record-breaking growth in deals, especially in the energy sector.

Latin America, and especially Brazil, were very badly affected by the pandemic but we then saw a major resurgence in the M&A market in 2021, with a sevenfold rise in value. 

There is a certain sense of urgency attributed to Covid-19 and investors have been eager to close deals fast. Energy led the way, as usual, with high value in oil and gas transactions and renewables. Technology was also a growth sector. 

And, as the world’s major economies recovered, a rediscovered enthusiasm for cross-border deals has definitely included Latin America. 

Latam mna

According to the International Monetary Fund’s World Economic Outlook, published in October, the whole region saw a 7% decline in GDP in 2020, but major economies in the region then enjoyed robust growth in 2021. Among the larger economies, Brazil and Mexico are expecting growth rates of 5.2% and 6.2% respectively for 2021. 

There was a similar pattern in the M&A market. Deals in 2020 were worth just under $63bn, a 26% fall from 2019. That downturn was dramatically countered by the spurt of activity in Q4, which carried over into 2021. 

A record number of deals were announced in 2021 with a combined value of $133.7bn, the highest annual value in a decade. Although early figures from Q4 do suggest that the regional M&A market is slowing after its post-pandemic surge. 

Private equity also rose, with twice the number of buyouts and more than triple the value. The volume of exits more than doubled, and their value rose almost sixfold, exceeding the previous record set in 2019.

Transactions involving bidders from outside of the region climbed to new highs in both number and value. US bidders were most prominent and Brazil was the main attraction. In fact, Brazil’s domestic and inbound activity was the major factor in the massive upswing in Latin American M&A in 2021. 

Eight of the 10 biggest transactions targeted Brazilian companies, notably the tie-up between Hapvida and NotreDame to create the country’s biggest hospital chain. The next largest contributors were Colombia and Mexico.

Financial services deals accounted for 20.1% of the market in value. Deals in the rapidly expanding fintech subsector were also significant and are expected to grow in the next few years. In value terms, the energy, mining & utilities sector were the biggest, while the highest number of deals were in technology.

Three of the six largest deals were in the energy sector, including the second largest overall. That was Colombia’s state-owned Ecopetrol acquiring Interconexion Electrica from Colombia’s finance ministry. The move is part of Ecopetrol’s plans to diversify its energy portfolio away from hydrocarbons. 

However, the IMF is only predicting 3% growth for the region in 2022. Mexico is expected to slow a little to 4%, but Brazil is only predicted to grow 1.5%, compared with its 5.2% for 2021.

It is not all good news – possible new variants of Covid-19 plus two looming elections to supplement existing socio-political issues have the potential to interrupt the post-pandemic recovery. But on the whole, the region is expected to flourish in 2022.

Outlook

There are some concerns about socio-political issues (and Covid-19 variants) but prospects are good. There will be more valuable opportunities in energy and natural resources, especially in natural gas and renewables. The ever-growing technology segment – particularly fintech and consumer technology - is also one to watch.

Download the full report here

Notes:

The M&A Community is a forum that focuses on relevant investment topics, cross-border M&A, and private equity within the prevailing economic climate.

The forum hosts events, conferences and workshops that bring together key players and expert opinions to discuss the challenges and solutions to help companies conduct and navigate cross-border investment strategies, M&A deals, tax regimes, legal risks, and potential cultural conflicts.

Become a Speaker speakers@mnacommunity.com

Become a Partner partners@mnacommunity.com

Powered by iDeals Virtual Data Rooms 

A VDR is a document repository, usually in the cloud, for storing and sharing sensitive information between businesses. In an M&A transaction, VDRs are primarily used to facilitate the M&A due diligence review process. 

Specific VDR features depend on the provider and scope, size, and industry of the M&A transaction. Traditionally the seller in an M&A transaction hosts the VDR. However, in some cases, a buyer may already have a VDR subscription and may opt to facilitate the process by hosting the data room. 

Visit the iDeals website to download a white paper on how to make your next VDR work for you.

Other Insights

See More
M&A

Brazil 2021 M&A, Private Equity, Venture Capital Handbook

Brazil’s booming economy bounced back rapidly from the devastating impact of Covid-19 and 2021 was an amazing year for M&A in most sectors....

See More
Brazil
Finance

Women in Finance: Strategy and opportunities in Brazil for 2022

There are more women in senior financial roles now that it is recognized that they get good results and in response to incentives for diversity...

See More
Economy

Mergers & Acquisitions and Antitrust Economy: Economic Synergies and Efficiency

One of the most relevant topics in corporate finance is the role of synergies in operations of mergers and acquisitions (M&A’s)....

See More
M&A
M&A

China M&A Trends Report FY 2021

Brought to you by the M&A Community in association with Mergermarket. Another record-breaking year should be cause for great optimism but a...

See More
Iberia mna
M&A

Iberia M&A Trends Report FY 2021

Brought to you by the M&A Community in association with MergerMarket.  Industrials and chemicals lead the way in a post-Covid surge...

See More
Dach M&A
M&A

DACH M&A Trends Report FY 2021

Brought to you by the M&A Community in association with Mergermarket.  Europe’s model region is still enjoying a post-Covid boom, with...

See More
USA
china usa
M&A

How the Rise of China changes the M&A Game

While the M&A landscape has experienced significant short-term changes because of the COVID-19 pandemic, investors are very conscious that...

See More
Chile
Brazil China
M&A

Investment Opportunities And Successful Cases Between China And Latin America

Relations between China and Latin America have strengthened in recent years, with the COVID-19 pandemic as a turning point. Nearly $75 billion...

See More
Brazil
clean energy
Energy

According to an expert, clean energy is Brazil’s ace in the quest for foreign investments

Although we are going through challenging times with the water crisis and political and economic uncertainties, the Brazilian energy industry is...

See More
Brazil
M&A Community
Energy

Energy Investment Projections In Brazil

At an event organised by the M&A Community, participants emphasise that the water crisis and the political context are challenges, but they...

See More
Dach
M&A

DACH M&A Trends Report H1 2021

Brought to you by the M&A Community in association with Mergermarket.  Real estate, pharma, industrial and chemicals and technology...

See More
Latam
M&A

LatAm M&A Trends Report H1 2021

Brought to you by the M&A Community in association with Mergermarket.  Led by the financial services sector and big deals in energy...

See More
Iberia
M&A

Iberia M&A Trends Report H1 2021

Brought to you by the M&A Community in association with Mergermarket.  Rapidly expanding opportunities in energy, especially...

See More
China
M&A

China & Hong Kong M&A Trends Report H1 2021

Brought to you by the M&A Community in association with Mergermarket.  As both economies bounce back from Covid-19, infrastructure and...

See More
Brazil
IPO

Prospects for the M&A and IPO market in Brazil

Despite two very challenging years for the Brazilian economy and population, due to the consequences left by the COVID-19 pandemic, the M&A...

See More
USA
digital-USD
Digital currency

Webinar: Are Digital Currencies Disrupting Global Markets? Risks, Opportunities, And Outlook

Cryptocurrencies, once viewed as the province of nerds and dodgy financial transactions, are now becoming mainstream. More countries around the...

See More
Mexico
IPO
M&A

M&A Latam, Facts, Trends, & Insights For 2021

M&A activity is fast recovering from the impact of Covid-19 all round the world. This is especially evident in Latin America (LATAM) where,...

See More
USA
digital assets
Digital assets

Acquisition and Integration of Digital Assets

In the last 15 years more than 52% of US listed companies have disappeared, and while the average life of such a company in 1955 was 61 years,...

See More
Portugal
green energy
Energy

The Ins and Outs of Becoming a Player in Portugal’s Green Energy Market

Portugal has seen a rapid expansion of investment in renewable energy in recent years, especially in solar PV. There has been considerable...

See More
Brazil
spain
Infrastructure

Infrastructure Insiders Discuss Opportunities and Bottlenecks

Cleverson Aroeira (BNDES), Venilton Tadini (ABDIB), Elias de Souza (Deloitte) and Thiago Costa Monteiro Caldeira (PPI) untangled the sector and...

See More
USA
Health Tech M&A
Healthcare

Telemedicine is Changing the Healthcare Landscape: Expert Outlook 2021

With several new coronavirus strains circulating, it is hardly likely that the healthcare industry will soon escape from this period of...

See More
USA
M&A AI Tech
Tech

M&As in the AI Market: Tech and Deals Explained

The artificial intelligence (AI) industry survived its ‘winter’, in terms of limited hardware capacities, some time ago. Now, this sector seems...

See More
USA
Bruce Molloy
Tech

AI Industry: What Any Business Leader Should Know

Business leaders can understand what AI can do in straightforward ways, including the opportunities it creates, the problems it solves, and the...

See More
USA
Healthcare

The Post-pandemic Health Industry: Tech Is Poised to Play a Much Bigger Role

The next normal presents itself with emerging opportunities, challenges, and new health tech use cases in the US, and globally.

See More
Brazil
Sao Paulo, Brazil
M&A

Experts Show Optimism for the M&A Market in Brazil in 2021

Economic recovery in a Brazilian context will involve greater liquidity and an enormous structural change.

See More
Brazil
The National Congress of Brazil
M&A

The LGPD to Attract More Foreign Investment to Brazil

With the LGPD, the business environment will have more clarity about the regulations to be made a clearer perspective for foreign investors.

See More
New Normal
M&A

M&A: Getting Used to the ‘New Normal’ 

Political and geopolitical tensions worldwide may also hint at the events we might see in the nearest future. What are the main currents in the...

See More
Portugal
Oporto, Portugal
M&A

M&A in the North of Portugal: Tough Situation, Plenty of Opportunities

The outlook of the mergers and acquisitions landscape in the north of Portugal.

See More
Reva Goujon
M&A

‘Strategic Scenario Planning’: Reva Goujon — about resilient M&A Approach, US-China Rivalry, and Cyber Influence Ops 

How to design smart and resilient M&A strategies amidst global uncertainties?

See More
USA
Crossroads
M&A

Global Business Climate, Geopolitics, and M&A: Where we are at now 

Everyone, from small firms to large corporations, has to adapt to the new realities and find new ways to stay afloat.

See More
USA
Tech

‘AI Hype’ and M&A: Artificial Intelligence Strategies and Putting a Value on a Deal

How AI technologies can create value for different industries, and what to consider during any AI-related M&A transaction.

See More
Ignacio Tornero
M&A

China Goes Overseas: The Successes and Challenges of PRC in Latin America. An Interview with Ignacio Tornero

Digging deeper into the Chinese expansion in Latin America.

See More
USA
Tech

Tech, M&As and their Future: Reality and Expectations

From the valuation of AI assets to IoT, blockchain, and ESG (Environmental and Social Governance) in business.

See More
Portugal
Porto, Portugal
Legal

Legal Frameworks for Turbulent Times: Cases of Distressed Investments in Portugal

Are there ways to prevent the wave of insolvencies expected in 2021?

See More
USA
M&A

Geopolitics and M&A: Power Play in the Turbulent World. An Interview with Klisman Murati

How do geopolitics define the long-term strategies of states, and impact the economic actors?

See More
Portugal
M&A

Distressed Investments in Portugal: An Economic and Legal Outlook

The number of insolvencies in Portugal is rising and businesses are facing uncertainty in terms of future financing.

See More
USA
Hong Kong harbor
M&A

China’s Gordian Knot of Geopolitics: Regional Expansion or Global Ambitions?

Though Beijing is being careful with international politics, in an economic scene it is more active.

See More
USA
Investment

The US vs. China: How their Geopolitical Game is Affecting M&As

Beijing remains cautious in terms of restrictive measures against the US in response.

See More
Australia
M&A

Four Human Capital Factors to Consider during an M&A Deal

Without the proper management of human resources, the majority of M&A deals are bound to fail.

See More
Australia
M&A

Extracting Commercial Benefit from Data: Lessons for M&As

Data can be applied and bring value at various stages of the M&A process.

See More
Brazil
Legal

LGPD in Brazil: How the New Data Protection Law is impacting Businesses and Deals

Here are some useful hints and recommendations by experts in the field

See More
China
Investment

M&A Regulatory Updates in China and Abroad 

How can tightening regulations impact the M&A situation in the Asia-Pacific region?

See More
M&A

Global M&A: Is a Recovery in Sight?

The full impact of the coronavirus crisis has manifested itself in Q2 2020. Here’s a brief overview of the global M&A situation in Q&A.

See More
China
M&A

Trends That Are Defining Cross-Border M&A in China

The global M&A market is showing a strong decline: it has more than halved to $0.9T in the first half of 2020.

See More
USA
Investment

Paradigm Shift in Impact Investing: Trends to Influence Businesses in a Post-Pandemic World

While the world is living through turbulent times, businesses and investors cannot stand aside unaffected. To dive deep into the issues of...

See More
China
Energy

Global Energy Investments and M&A: A Quick Guide

The chaos this year on the oil market seems to have echoed into other energy sectors, leaving investors in a state of uncertainty. However, this...

See More
China
Energy

Investment Opportunities and Risks in the Global Energy Industry

2020 looks like being the biggest black swan event since WWII. The global pandemic has affected the mentality of investors all over the world....

See More
China
legal service
Legal

The Role of Legal Service Providers in Cross-Border M&A

In recent years, an increasing number of Chinese companies are seeking international expansion in response to the nation’s “Go Global” campaign....

See More
China
business mna
M&A

How to improve bid success rate in cross-border M&A

Initiated by iDeals and co-organized by several key players in the cross-border M&A industry such as KPMG, Eurasian, and GORG, the China-EU...

See More
China
mna community
Investment

M&A Community In-depth Interview: The Three Key Questions in China-EU M&A

Recently, iDeals hosted the M&A Community: China-EU Cross-border Best Practice Sharing event in Shanghai.

Get In Touch

Our team is happy to answer your questions. Fill out this form and we will get in touch with you.