Deal Trends In Latin America: March 2016

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 1/1/13-12/31/15.

Opportunities in Latin America continue to be plentiful and in our latest edition, S&P Global Market Intelligence explores transaction trends and deal activity across the financial sector, with an emphasis on bank assets and bank credit quality.

Highlights of the report include: 

• Deal Volume over the calendar year of 2015 decreased slightly (3.4%). In contrast, deal value decreased significantly (46.6%) from the previous calendar year in 2014
• Brazil remains the leader of deal activity in comparison to the other major countries in the region. In 2015, Brazilian targets were represented in six of the top 10 deals
• Deal values in 2015 year-over-year (YoY) fell dramatically in the materials and telecom space, while deal volume in the telecom space has nearly doubled over that same time frame
• 45% of the total deals done in 2015 in Latin America were intra-regional versus foreign, non- Latin American buyers
• Brazil’s Sovereign Long-term foreign currency rating dropped from BB+ to BB. Argentina’s S&P sovereign long term foreign currency credit rating is given as default although its local currency rating improved one notch to B- (as of February 2016).