LATAM M&A overcomes pandemic pain and political volatility

According to the International Monetary Fund’s World Economic Outlook, published in October, Latin America saw a 7% decline in GDP in 2020, but major economies in the region then enjoyed robust growth in 2021. Among the larger economies, Brazil and Mexico are expecting growth rates of 5.2% and 6.2% respectively. 

There was a similar pattern for the M&A market. Deals in 2020 were worth just under US$63bn, a 26% fall from 2019. That downturn was dramatically ameliorated by the spurt of activity in Q4, which carried over into 2021. 

A record number of deals were announced in 2021 with a combined value of US$133.7bn, the highest annual value in a decade. Although early figures from Q4 suggest that the regional M&A market is slowing after its post-pandemic surge. 

Private equity was also up, with twice the number of buyouts and more than triple the value. The volume of exits more than doubled, and their value rose almost sixfold, exceeding the previous record set in 2019.

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