Latin America's commodity-fueled economic rebound is not translating into a higher level of mergers and acquisitions this year.
Boom and Bust
Latin American M&A activity sputters this year, despite a lift in the economy. But expect more landmark deals from emerging 'super champions.'
Guillermo Jasson, head of Latin American mergers and acquisitions at Morgan Stanley, estimates that the value of Latin America's announced M&A deals will reach $30 billion this year. That's a one-third drop from the $47.2 billion in deals announced in 2004. "It'll be a stronger market with more deals (than 2003), but it won't be as strong as 2004," Jasson said at LatinFinance's annual M&A Round Table, held in New York City last July.
The numbers are already starting to point in this direction. Announced M&A deals in the first half of 2005 fell to $18.2 billion, 29% less than in the first half of 2004.
Look Before You Leap
M&A volumes leapt last year as economic growth surged 5%. This year, most major Latin...
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