While, The survey highlighted that in the first half of 2022 there was a significant increase in operations with tickets for US$100 million or more. And he added that these tickets represented 33% of operations.
What were the sectors with the most operations
In the first six months of the year, The three most active sectors were Technology, Media and Telecommunications (TMT), Energy and Resources, and Food and Agroindustry, which in total represented more than 80% of the transactions carried out and amount operated in the period.
According to PwC Argentina, Technology, Media and Telecommunications continues to be one of the most important sectors with the highest projections for mergers and acquisitions, driven by the levels of digitization, both in Argentina and globally. The operations of this sector represented 50% of the total volume operated, and 65% in terms of amount.
Major mergers and acquisitions transactions
- Technology: Acquisition by SoFi Technologies Inc of the Argentine developer Technisys for US$1.1 billion.
- Lithium: The Chinese mining company Zangge Mining bought a 65% stake in the Laguna Verde lithium project located in Catamarca from Ultra lithium Inc. for US$50 million.
- Petroleum: Vista Energy, Miguel Galuccio’s company, bought 50% (it already had the other half) of the Aguada Federal and Bandurria Norte blocks in Vaca Muerta, belonging to Wintershall Dea for a reported value of US$140 million.
- Energy: Acquisition by SCC Power (MSU Energy) of four thermal power plants belonging to Stoneway Capital, for US$50 million.
- Financial services: Purchase of 49% of Prisma Medios de Pagos by the US company Advent International for US$360 million. Food: CCU acquired 49% of the shares of Aguas Danone de Argentina, the leader in the mineral water market in the country.
purchases abroad
The PwC Argentina report also highlighted eight transactions in which Argentine groups acquired a company outside the country. The total amount was for US$280 million and Brazil and Uruguay were the main destinations. The most outstanding merger was that of Bioceres and MarroneBio Innovations from the USA corresponding to the agricultural sector. Despegar, Globant and MercadoLibre also stood out among the most active Argentine groups.
technology industry
Despite a context of lower liquidity that impacted Venture Capital investments, PwC Argentina highlighted at least 27 investment round operations.
Unlike 2021, the report indicated that “there were no large tickets”, given that the reported amount raised was US$187 million. The operations were mainly linked to the Technology and Internet sectors, including the Fintech, Ecommerce, Agritech, Biotech, Edtech, Foodtech, Data Analytics subsectors, among others.
Exit of multinational firms
In the first half of the year, 11 operations were identified in which a multinational group sold all or part of its operation in Argentinahighlighted the PwC Argentina report. In 2021, this type of case amounted to 19 transactions.
“These exits have been taking place in a context of reorganization of global portfolios as of COVID-19, and in many cases they are transactions that have been in the works since last year or even 2020.″, explained PwC Argentina, who in turn added that this type of exit “will surely continue to occur” as long as “the general context of uncertainty and volatility at the economic and political level is maintained, together with exchange restrictions and stocks.”
Source: Ambito
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