Deal Trends in Latin America is a publication brought to you by S&P Global Market Intelligence that explores the regional deal environment in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador Mexico, Panama, Peru, and Uruguay and provides high-level statistical benchmarks. Except where otherwise noted, deal activity analyzed in this report covers the period from 1/1/14-6/30/16.
Recent deal activity in Latin America has seen a downward trend through the first half of 2016. In this report, S&P Global Market Intelligence explores the sectors and countries impacted by this trend.
Highlights of the report include:
• Latin American deal volume is trending downward, as indicated by the activity in the 1H 2016. Looking at 1H 2015 compared to 1H 2016, deal volume has fallen 17.8%.
• Deal values in the two largest economies in the region, Brazil and Mexico, have decreased significantly relative to CY 2014 and CY 2015.
• Brazilian and Mexican targets were represented in seven out of the ten largest deals in the region, with Chilean and Colombian targets taking the remaining three spots.
• 59% of the total deals done in 1H 2016 in Latin America were intra-regional versus foreign, non- Latin American buyers.
• Brazil’s Sovereign Long-Term Local Currency S&P rating fell from BBB- to BB, though the 2016 GDP growth estimate improved slightly from negative 3.1% to negative 3%.