Latin American M&A activity dropped slightly in May, registering 172 deals - down from 175 in May 2016, and the total value of 70 reported deals off 10.30% year-on-year to US$6.68bn.

The region is on pace for a standout year in terms of deal valuation, as the total amount from the 334 deals that reported values from January to May reached US$64.2bn - an 89.4% increase over the total in the same period of 2016, according to data from M&A research firm Transactional Track Record (TTR).

From January to May, Brazil generated the strongest activity in the region with 425 operations, an 8% increase, and 165 transactions had reported values totaling US$37.80bn - 227% more than the reported value in the same period in 2016.

Despite investor uncertainty this year, Mexico came in secondwith 118 operations, up slightly from 117 in 2016, and reported values totaling US$9.297bn, a 14% decrease.

Chile recorded 104 operations (+14%) with reported values totaling US3.271bn (-55%), followed by Argentina with 102 deals (+15%) and total reported values down 26% to US$1.433bn.

While Colombia saw only 67 deals in the period (-1%), the reported values totaled US$12.73bn, up 188% year-on-year, making it the second most active nation in the region in terms of capital mobilization.

Peru saw 47 operations from January to May - a 29% decrease, as well as a 26% drop in total reported values to US$1.43bn.

Latin American firms targeted the US and Canada in two deals, while Europe and Asia attracted one operation each.

TTR reported that 24 firms in the US and Canada and 23 companies in Europe carried out operations in Latin America in May.

TTR also recorded 19 private equity operations in the region for May, six of which reported values totaling US$2.24bn, reflecting a 36% increase in the number of operations and a 214% jump in total value.

There were 16 venture capital deals in May for the region with reported values of US$256mn, an 11% increase in the number of deals and a whopping 673% increase in reported values, according to the research firm.

Source: Business News Americas / BN Americas - Chile