International Business Law Advisor Insights on International Litigation & Transactions

Strong Outlook for Mergers & Acquisitions in Latin America

By Santiago A. Cueto on Posted in Business Transactions

Brazil will lead mergers and acquisitions in Latin America

I’m seeing a lot of M&A activity taking place in Latin America these days.  According to Bloomberg New and Latina American Advisor, takeovers are at their strongest pace in a decade as the economy recovers and credit markets continue to improve.

While most have the activity is taking place in Brazil and Mexico, Colombia, Chile and Peru are also getting into the action.

There are also a lot of companies pursuing IPOs, trying to follow the steps of Banco Santander Brazil’s success. Be sure to see my previous posts on the subject,  Emerging Market IPOs: 6 Risk Factors to Consider and Structuring IPO Deals in a Rebounding Global Economy.

Trend to Watch:  Look for Small to Medium-Sized Players in the Following Sectors to Take the Lead in M&A Activity:  Beverage and Bottling,  Real Estate Development,  Consumer Goods and Commodities.

      -Santiago

  • Quinn Smith

    Santiago,
    I think you are correct in your analysis. We have also seen an increase in M&A activity, and our friends at Brazilian firms are seeing an explosion of this type of work.
    One of the most important aspects of Latin America’s growth is the develop of capital markets. Notably, this reduces the need for Brazilian companies to rely on New York and London for these services. This trend is also creating a growth in shareholder/corporate arbitrations. It will be interesting to see how US-based law firms will adapt to this new reality.
    Quinn