PERU: M&A DEALS OVERVIEW

Mergers and Acquisition Overview – Peru

Peru registers 30 transactions during the third quarter of 2017.

  • 9 transactions registered in the third quarter amount for US $1.8 billion

  • Throughout the year, 91 transactions have been posted valued at US $3.4 billion

  • Real estate sector is the most outstanding of the quarter with 7 transactions done

The mergers and acquisitions activity in Latin America continues its upward trend to the ninth month of the year, adding up to a total of 1,495 transactions, according to a Transactional Track Record (TTR) report. This figure represents an increase of 1.70% compared to the same period of 2016. Of the total deals, Peru accounted for only 6% of mergers and acquisitions. As of September, Peru has the lowest number of M & A at the regional level, with 91 operations.

The M & A market in Peru closed the third quarter of 2017 with a total of 30 transactions. Nine of which have a disclosed total amount of approximately US $ 1,7 billion, according to the most recent TTR report. These figures represent a decline of 23.08% in the number of transactions and 14.01% in the amount thereof, with respect to the same period of 2016.

Of the transactions registered in the nine months of the year, 36 are low market (amounts less than US $ 100 million), 3 middle market (between US $ 100 and US $ 500 million) and 2 high market (above US $ 500 million).

In terms of sectors, the Real Estate is the one that accounted for the most transactions throughout 2017, with a total of 14 deals, followed by the Financial and Insurance sectors, with 13 transactions, in addition to the Agribusiness and Livestock sector, with 8 transactions closed.


CROSS-BORDER SCOPE

So far this year, with regards to the Cross-Border market, Peruvian companies have mainly opted to invest in Ecuador and Chile with three deals each. In terms of deal size, Ecuador stands out with US $ 11.4 million.
On the other hand, the countries that opted to make the most acquisitions in Peru were Spain with 10 transactions, Chile which registered 5 deals, Mexico, China, the United States and Canada, both with 4 deals closed. The larger size deals were done by China with a total value of approximately US $ 1.4 billion.


PRIVATE EQUITY AND VENTURE CAPITAL

During the course of 2017, 3 private equity transactions valued at US $ 120 million were closed in Peru, which represents a 73% decline in the number of transactions and 74% in the amount thereof, with respect to the same period of 2016.

Regarding to venture capital deals, 4 transactions were recorded during the year, of which 3 have a non-confidential amount of about US $ 1.53 million, representing a year-on-year growth of 100% in the number of transactions and a 45% decline in mobilized capital.

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Peru in your Investment Portfolio

The Peruvian economy has made significant progress in its economic performance in recent years, with dynamic rates of GDP growth and low inflation and debt.

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Real State Development

The real estate market (residential and commercial) has not been absent from the tremendous benefits generated by Peru´s sustained economic growth.

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Venture Capital / Funding Start Ups

On the heels of Peru’s deals and exits in 2016, there is perhaps no better time to develop the country’s budding ecosystem.