Merger and acquisition (M&A) activity across Latin America is likely to remain tepid this year, amid persistent economic and political challenges in the region, although the outlook for the second half of 2023 is better than for the first.

There were 3,452 M&A transactions in the region in 2022, down 11% compared with 2021, reaching a declared financial value of U$97.9bn, which was a reduction of 42%, according to a report prepared by UK insurance and reinsurance broker Aon, Datasite and TTR Data.

According to the study, despite Brazil being the most active country in the region, with 2,387 M&A transactions last year, the volume dropped 12% and the announced values were down 49% to US$57bn.

In second place was Mexico, with 422 transactions (+1%), with a declared value of US$16bn (-17%), followed by Chile with 314 transactions (-2%) and US$14.7bn in capital invested (-17%) and Colombia, with 266 transactions (+6%) and US$10bn spent (-20%).

In this interview, Felipe Junqueira, the head of M&A and transaction solutions leader for Latin America at Aon, talks with BNamericas about the trends we can expect to see in M&A in Latin America this year.

Source: Business News Americas / BN Americas - Chile