For M&A specialist Luis Doporto Alejandre, Mexico’s mergers and acquisitions environment is moving in line with the events surrounding the country’s business and economic sector.
During the first half of 2022, the 191 operations registered in the national territory only reached a non-confidential amount of 7 billion 438 million dollars, 32% less than the same period in 2021, revealed a Transactional Track Record (TTR) inform.
“Given the 5% decrease in the number of operations recorded during the first month of the year, in addition to the current inflationary environment, this figure shows an alarming parameter for the domestic market,” said Doporto Alejandre.
“The number of mergers and acquisitions involving Mexican companies during the year’s first half tells us a lot about current M&A tendencies. Moreover, it reflects the global reality, even though the market, including the cross-border segment, is registering important operations”.
Luis Doporto Alejandre highlights Alpek, the petrochemical arm of the Mexican conglomerate Alfa, intent on buying the company Octal Holding, a PET sheet manufacturer with production centers in Oman and Saudi Arabia, for 620 million dollars debt free.
Another example is the move carried out by Grupo Aeromexico, who signed a letter of intent to buy for US$492 million in cash 48.9% of PLM Canadian firm Aimia. This company manages the airline’s Club Premier rewards program.
“These operations are relevant considering the internet, software, and IT services, as well as the real estate sectors, dominate transactions showing an increase in growth of 32% and 92%, respectively,” said Luis Doporto Alejandre.
The specialist concludes by highlighting TTR’s figures for private equity and venture capital transactions.
Both sectors registered 84 operations with a value of 1,699 million dollars, representing a 9% increase in the number of transactions but a 14.35% decrease in value.