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After a record-breaking 2021 for LatAm, renewable energy and the booming technology sector will be the big attractions for foreign investors. This material was created in association with Mergermarket.
Renewable energy and a booming technology sector are big attractions for foreign investors.
After a dire 2020, Latin America, and especially Brazil, saw a major resurgence in M&A which began towards the end of the year and continued into 2021.
The key sectors were energy (oil and gas and renewables), mining and utilities, financial services and technology, especially fintech.
A record number of deals were announced in 2021 with a combined value of US$133.7bn, the highest annual value in a decade. PE was also up, 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. US bidders were very prominent with Brazil the main attraction, followed by Colombia and Mexico.
Causes for concern: only 3% growth predicted for the region in 2022; new variants of Covid-19; and two presidential elections.
But there will be valuable opportunities in energy and natural resources, especially natural gas and renewables, plus the ever-growing technology segment.
To find out more, download the trend report.