The mergers and acquisitions (M&A) market in Latin America saw a total of 2,904 transactions in 2024, valued at US$87.68 billion, according to the annual Transactional Track Record (TTR) Data report, in collaboration with Datasite and AON. This marks a 16% increase in capital mobilized compared to 2023, but a 16% decline in the number of transactions.

Brazil retained its leadership position with 1,674 deals, a 21% decrease in transaction volume but a 10% rise in capital mobilized, reaching US$47.91 billion. Chile moved up to second place with 367 transactions (down 10%) and a total deal value of US$13.27 billion (down 9%). Mexico dropped to third place, registering 359 deals (a 7% decline) but with a 22% increase in total value, reaching US$17.06 billion.

Colombia and Argentina followed in the rankings, with Colombia reporting 281 transactions (down 5%) and a 35% growth in deal value to US$6.74 billion. Argentina recorded 238 deals (a 7% decline in volume), but its capital mobilized surged by 246%, reaching US$8.83 billion.

The private equity sector in Latin America saw 204 transactions in 2024, 67 of which disclosed values totaling US$7.05 billion. This represents a 2% increase in transaction volume but a 24% decrease in capital mobilized compared to the previous year. Venture capital activity included 617 transactions, with 501 deals disclosing a combined value of US$5.33 billion. This represents a 36% drop in transaction volume and a 2% decline in value.

Cross-border transactions highlighted the growing interest of Latin American companies in foreign markets, with 87 deals in Europe and 72 in North America. North American companies led investments into Latin America, with 442 transactions, followed by European firms (353) and Asian firms (91).

A standout deal in 2024 was the US$6.2 billion transaction involving Mexico Infrastructure Partners, a firm focused on infrastructure and energy investments. The deal's advisory team included Baker McKenzie, Creel, García-Cuéllar, Aiza y Enríquez, and Ritch Mueller.

“Operations linked to technology, such as data centers, gained strength last year and will be the main focus for investors in the coming years,” said Pedro Gonçalves da Costa, M&A and Transaction Solutions Leader, AON Brazil. He also highlighted the continued relevance of the energy transition in attracting international investments, with Brazil, Mexico, and Chile expected to lead in this area through 2025.

Source: Mexico Business News