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
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....