Dear Reader,

Welcome to this year’s edition of the Latin American M&A Spotlight, brought to you by Mergermarket and Greenberg Traurig.

Latin America continued to endure subdued transaction activity during turbulent times in 2016. Low economic growth and weak oil and commodities markets negatively impacted M&A activity, especially in an economy that traditionally relies on the oil and gas and mining sectors for growth. High corruption levels deterred some would-be dealmakers, although currency depreciation, particularly in Brazil and Argentina, made these countries more attractive to foreign investors.

Intraregional deals gained more traction in 2016, with energy and resources; consumer; and technology, media and telecoms attracting the most investment. Reforms and initiatives driven by governments in Chile, Peru, Argentina and Mexico may pique the interest of private investment and drive further M&A activity in the region. Meanwhile, reforms in the mining sector also indicate a rise in activity over the next 12 months. The consumer and retail sector is also looking positive, with a growing middle class, the large domestic markets of Brazil and Mexico, and improved access to credit spurring M&A activity.

North America and Europe have led cross-border M&A activity in Latin America as companies from these economies look to capture investment opportunities in developing markets.

While respondents are optimistic about the prospects for dealmaking in the year ahead, they are also aware of the challenges that the coming 12 months may present. So while 2017-18 is ripe with opportunities, dealmakers should proceed with caution.

We hope that you find this report useful and, as always, we welcome your feedback.