Led by the financial services sector and big deals in energy (including renewables), mining and utilities, deal prospects are extremely promising as the region sees a rapid recovery from the impact of Covid-19. This material was created in association with Mergermarket.
Sunnier economic prospects promise much for LatAm dealmakers
Latin America was badly affected by the pandemic, with lockdowns across the region leading to a 9.4% contraction of the economy in 2020, compared to a global average of 3%. There are now signs of rapid improvement and a prediction of 4.1% economic growth in 2021.
As confidence grows, so does the number of deals, with the value to date (US$66.9bn) already greater than that for the whole of 2020.
A dramatic rise in interest from foreign investors this year took inbound deal value to US$27.8bn – a fivefold increase on H1 2020 and the highest H1 value since 2014. US bidders were particularly active.
Domestic activity was also prolific, largely due to tie-ups between Brazilian firms.
Private equity activity is increasing and Brazil has opened up its natural gas distribution and LNG markets to private investors which is expected to elicit further international interest.
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