The number of deals in Latin America in 2016 fell for the fourth consecutive year to 549, down 8.5% from the previous year. Yet market value stepped forward 9% year-on-year to US$84bn, thanks especially to select mammoth acquisitions by foreign players.

The value of deals led by bidders based outside Latin America in 2016 grew by 46% against the previous year to US$54.5bn as weaker currencies in Brazil and Argentina spurred outside interest from buyers based in Europe, Asia and North America. The figures suggest foreign buyers chose targets carefully in a negative growth environment however, with the number of inbound deals dropping 12%.

Respondents unanimously predict that Latin American firms will play a larger role in acquisitions going forward, both within the region and farther afield. In addition to highly developed markets, they’ll be hunting for deals in Eastern Europe and in Africa, respondents say.

Powerhouse Brazil dominated 2016 with US$52.8bn worth of M&A activity, over half the entire value of Latin America and 64% more than the previous year. Yet activity in Argentina rose too as investors applauded President Mauricio Macri’s business-friendly reforms. Looking ahead, respondents say Chile, with its relative stability and diversity of exports, will tempt bidders and private equity (PE) players in 2017-18.

The energy, mining and utilities sector’s US$43bn deal volume accounted for just over half of M&A market value in the region, rising in absolute and relative terms from 2015, when the sector’s US$24bn made up less than a third of activity. Survey results suggest consumer, infrastructure and telecommunications sectors will be more prominent going forward. Meanwhile, respondents say lower-for-longer oil prices would steer dealmaking away from Brazil and Argentina, towards Chile and Mexico.