Zephyr database shows Latin America M&A continued to weaken in Q1 2016

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PE value improves year-on-year in Latin America

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It remains to be seen if PE and VC growth is returning to the region but the year-on-year improvement remains a positive spotlight amid a somewhat flat M&A landscape.

The value of mergers and acquisitions (M&A) targeting companies based in South and Central America, including tax havens, declined for the third consecutive quarter in Q1 2016, according to information collected by the leading M&A database Zephyr. There were 480 deals worth a total USD 39,286 million in Q1 2016, down from 666 deals worth USD 72,860 million in Q4 2015.

The largest M&A transaction in the region recorded by Zephyr in Q1 2016 involved China Overseas Land and Investment acquiring British Virgin Islands-incorporated Tuxiana and China-based CITIC Real Estate in a deal valued at USD 4,777 million. There was only one top 20 deal by value which featured a target based outside a tax haven and that was the acquisition of Brazilian online road toll electronic payment services provider Servicos e Tecnologia de Pagamentos by FleetCor Technologies for US 1,148 million.

Eight of the quarter’s top 20 deals featured a Cayman Islands target and together they accounted for 60 per cent of the overall USD 15,293 million-worth of M&A recorded for companies based in the tax haven in Q1. Brazil was the best-performing non-tax haven country with a total of 88 deals worth USD 2,500 million.

The Zephyr database shows that private equity and venture capital (PE and VC) investment targeting Latin American companies fell in Q1 to 51 deals worth USD 4,346 million from 65 deals worth USD 12,955 million in Q4 2015. However, in a year-on-year comparison, PE and VC investment rose from USD 3,371 million in Q1 2015 and was supported by two deals each worth more than USD 1,000 million.

Lisa Wright, Zephyr director, commented, “The decline in the value of Latin American PE and VC in Q1 was starkly highlighted as the USD 12,955 million-worth of deals for Q4 2015 was actually the highest recorded by Zephyr since Q2 2007. It remains to be seen if PE and VC growth is returning to the region but the year-on-year improvement remains a positive spotlight amid a somewhat flat M&A landscape. Given that so many deals in the Top 20 deals of the first quarter have involved tax havens within the LATAM region, in light of this week’s Panama paper’s leaks it will be interesting to see whether ultimately this trend continues or more importantly is allowed to continue.”


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Notes to Editors:
The date range is 01/01/2016 – 31/03/2016 inclusive
Activity is based on the activity of the target company
Deal status is announced, completed, pending or unconditional
The sector breakdown uses targets' activities as defined to be ‘Major Sectors’ by Zephyr
The Latin America and Caribbean region covers target companies in Anguilla (AI), Antigua and Barbuda (AG), Argentina (AR), Aruba (AW), Bahamas (BS), Barbados (BB), Belize (BZ), Bermuda (BM), Bolivia (BO), Brazil (BR), British Virgin Islands (VG), Cayman Islands (KY), Chile (CL), Colombia (CO), Costa Rica (CR), Cuba (CU), Curacao (CW), Dominica (DM), Dominican Republic (DO), Ecuador (EC), El Salvador (SV), Grenada (GD), Guatemala (GT), Guyana (GY), Haiti (HT), Honduras (HN), Jamaica (JM), Mexico (MX), Nicaragua (NI), Panama (PA), Paraguay (PY), Peru (PE), Saint Kitts and Nevis (KN), Saint Lucia (LC), Saint Vincent and the Grenadines (VC), Sint Maarten (SX), Suriname (SR), Trinidad and Tobago (TT), Uruguay (UY), Venezuela (VE)

About Bureau van Dijk
Bureau van Dijk (BvD) is the leading provider of private company, corporate ownership and deal information. BvD’s product range combines data from regulatory and other sources, including 140 information partners, with flexible software to allow users to manipulate data for a range of research needs and applications. Its Orbis database provides information on almost 200 million companies across the globe.

In addition, BvD addresses specific business challenges through its range of Catalysts including transfer pricing, credit, procurement, KYC, client on-boarding, M&A research and valuations, while BvD custom delivers bespoke solutions. http://www.bvdinfo.com/corporatefinance

About Zephyr
Zephyr is an information solution containing M&A, IPO and venture capital deals and rumors with links to detailed financial company information. Winner of numerous recent M&A industry awards, including Best M&A Data Publisher 2015 at the Acquisition International M&A Awards, Zephyr is published by Bureau van Dijk (BvD). The deals on Zephyr are linked to the company financials and peer reports on BvD's product range. Zephyr contains information on over 1.4 million deals.

About M&A Research Catalyst
Drawing data from Orbis and Zephyr, M&A Research Catalyst delivers clear and easy-to-interpret reports specifically created for M&A research. They combine information on companies, comparable deals and valuations alongside an interface to help you identify targets, or acquirers, and value companies. M&A Research Catalyst provides you with M&A-tailored information in an easy-to-interpret report, including: financials; earnings estimates; news and deals; comparable companies and deals; DCF valuation; and valuation multiples. http://www.bvdinfo.com/ma-catalyst

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Karolina Kocalevski
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