He The Argentine merger and acquisition market recorded a total of 40 transactions for an amount of 1.093 billion dollarsaccording to publicly provided data.
The number of operations surveyed by KPMG Argentina marked a low of 5% compared to the same period in 2023, although it showed an improvement in 29% compared to the last six months of 2023. The amount of transactions essentially doubled due to the purchase of Galicia Financial Group from the local subsidiary of HSBC by $550 million.
“Although the country continues to show its own dynamics driven by internal economic and political factors, Argentina recorded a slight recovery in the number of operations compared to the last months of 2023in a global and regional context of recovery,” they said from KPMG.
Ramiro Isaacdirector of M&A & Debt Advisory at KPMG Argentina, highlighted that “the sectors that have generated the greatest attraction of investments have been Energy and Natural Resources, with 33% of operations, and Technology, Media and Telecommunications, with 18%.”
The technology companies continue to arouse one of the greatest interests on the part of the international investors evaluating opportunities in Argentina, mainly from the United States. Although transactions between local players continue to represent a minority portion of the market, a greater participation of this type of transactions was observed in the second quarter of the year, representing 36% of the total transactions.
Company acquisitions and mergers grew 13.4% in Latin America
The region recorded transactions for 36.4 billion of dollarsrepresenting an increase of 13.4% Compared to the same period of the previous year. Much of this recovery is a consequence of the favorable global context that had a direct impact on the region..
Certain key factors influenced the activity, such as the political stability In several major countries, the economic reforms and the greater access to financing. As regards movement by region, Brazil was the country that led the ranking of the most active countries in the region, followed by Mexico and Chile.
The sectors are expected to Energy and Natural Resources are expected to be the protagonists of a turning point for activity in the remainder of the year. This is mainly due to the fact that the consequences of climate change are increasingly greater and are causing concern among the authorities, who are already planning regulatory changes with the aim of controlling the process.
Finally, the technology industry continues to be a key participant in the activity and one of the main sectors that promise to help in the economic recovery.
Mergers and acquisitions of companies increased by more than 15% worldwide
Global M&A activity continued to recover in the first half of 2024, driven by a resurgence of the United States as an investor. Trading volume increased by 17% year-on-yearuntil reaching the 1.6 billion dollarsAfter the Restrictive monetary policy around the world seems to control inflation and restore some stability to the markets..
The balance tilted decisively towards the corporate buyer, which accounted for 73% of the volume., a level last seen before the pandemic.
Among some of the factors that explain the dominance of the corporate sector, the following stand out, first of all: high interest rates that make debt-driven acquisitions too expensive. Secondly, the growth in stock market valuations (the S&P 500 is up 20% over the past year) provided companies with a stronger base to operate on. Finally, many Tech companies are better positioned to grow again having spent much of the 2022-2023 period focusing on operational efficiency.
The most relevant transactions were the offer of $35.3 billion of Capital One Financial by the credit card issuer Discover Financial Services, in February; then, the operation of Diamondback Energy by $25.8 billion by Endeavor Energy Resources also in February; and finally, the offer of ConocoPhillips by $23.1 billion to acquire Marathon Oilrecorded in May.
Source: Ambito
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