M&A activity remains brisk, leading many to ask when it will all end. But bankers expect continued flow in the second half, driven by a larger number of smaller issues, but with the potential for a jumbo trade, perhaps from a new market like the Andes. While smaller firms look to gain critical mass in competitive sectors, larger blue chips like América Móvil will look to spread their wings overseas.
As expected, this year has seen a greater number of transactions but lower volume overall. Dealogic data shows just over $71 billion from 839 deals for the year to mid-August, versus $101 billion and 603 trades in the corresponding period of 2006. Bankers say the drivers of the M&A revival are still in place. "We continue to see a good pipeline," says Udi Margulies, head of LatAm M&A for Lehman Brothers.