Corporate mergers and acquisitions in Argentina are down 16% so far this year, compared to the same period in 2022, according to a KPMG Argentina report on the sector released today.
Two months before the end of 2023, 70 confirmed mergers and acquisitions were recorded in the country, completed and announced, amounting to US$1,428 million, specific business.
Statistics indicate a 16% decrease in the number of transactions and a 64% decrease in the announced transaction amounts compared to the same period of the previous year.
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In Latin America, Argentina ranks fifth in importance for mergers and acquisitions, after Brazil (780), Chile and Mexico (210, each) and Colombia (130).
The trend in Argentina has maintained a balanced split between foreign buyers (55%) and national buyers (45%).
Among foreign buyers, it is observed that North America (mainly the United States and Canada) and Europe (mainly France, the United Kingdom and the Netherlands) concentrate 80% of all transactions.
Regarding the sellers, although the targets are companies based in the country, many of them have foreign investors or subsidiaries of multinational companies in the country.
In recent years, there have been announcements of operational restructuring and departure of multinational companies from the country.
In the past 10 months, the proportion of foreign sellers has increased from 23% in 2022 to 41% as of October 2023, representing an interest in the sale or exit of foreign investments in national assets.
On the other hand, the trend also shows the purchase of national assets by groups and companies with local investments.
The most active sectors as of October 2023 are industrial, retail, mining, technology and services, which together represent 70% of total transactions.
At the level of tradable (announced) quantities, the mining sector tops the ranking with 82% of 2023 deals worth $952 million.
In recent months, transactions have been observed in the financial sector involving major private banks, the most notable of which was the sale of the operations of Banco Itao in Argentina.
With information from Telam
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