M&A: Asia’s Resource Play
Mexican telecoms and Brazilian oil pump up the deal volume numbers claimed by advisors, but flow is still up year-on-year, even after stripping out distorting Telmex and Petrobras trades.
As of October 11, LatAm
M&A flow topped reached $216 billion, according to
Dealogic. In the same period in 2009, deal volume totaled only
$74 billion, a little over a third of this year.
However, without Telmex
and Petrobras - which most M&A specialists do not class as
true advisory - total volume comes in at only $126.9 billion,
still a significant increase, but somewhat less dramatic.
LatAm M&A specialists
are most excited by the ramp up in Asian-led natural resource
plays. One of the largest deals recently announced was the
acquisition of a 40% stake in Repsol's Brazilian assets for
$7.1 billion by China's Sinopec, giving the Chinese government
access to Brazil's offshore non-performing assets.
Spain's Repsol had been considering spinning the assets off
via an IPO before Sinopec came through with...
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