Boom and Bust

Sep 1, 2005

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
Latin America's commodity-fueled economic rebound is not translating into a higher level of mergers and acquisitions this year.

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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