LatAm M&A’s new investment profile

Author: Edward Price | Published: 21 Oct 2015

Falling commodity prices and regional political risk have contributed to a slower market for Latin American M&A in the second half of 2015. Counsel in the Americas are now asking what the rest of this year, and the start of the next, will hold.

In recent years, deals have been characterised by three trends: volume growth, value growth and inward capital flows. In other words more deals and more money, much of it foreign.

Developments in 2015, however, have reversed that trend.

"This year we’ve seen a slowdown in China resulting in declining commodity prices and have also seen some fairly significant corruption scandals. All of these have softened the M&A market in Latin America," said Sabrena Silver, banking partner at Linklaters. According to Silver, the third quarter of 2015 saw both the volume and value of M&A deals in Latin America decline on an annual basis....