LatinFinance - May/June 2014 - 9

NEWS
M&A

Large-scale acquisitions underscore the growing scope of
Latin companies, while a flood of smaller transactions keep deal
flow high. By Katie Llanos-Small

Buying time
Several large acquisition
announcements, spread across
a range of industries, grabbed
attention in march and april.
a consortium led by Hong
Kong-based mining firm MMG
- majority owned by china
minmetals - agreed to pay
Glencore Xstrata more than
$5.85 billion in cash for the
Las Bambas copper mine in
Peru. the deal is Peru's largest
ever m&a transaction, and the
second biggest acquisition by
a chinese company in latin
america.
in april, América Móvil
said it would offer €1.4 billion
($1.9 billion) for 44.76% of
Telekom Austria. after
forging a deal with austrian
government investment
vehicle Österreichische
industrieholding (ÖiaG),
the largest telekom austria
shareholder, amX will launch
a takeover bid for the portion
of the company's shares in free
float. amX will finance the offer
with a bridge loan.
five years after listing its
Brazilian operations, and in a
bet on the long-term potential
in the country, Santander said
it would bid to fully reintegrate
the subsidiary back into the
parent group. the Spanish
lender will offer 0.7 of its own
shares in exchange for each
unit or aDR in Santander
Brasil. the pricing works out to
a 20% premium to Santander
Brasil's 12.74 reais share price
before the offer was launched,
the bank said. 

Busy market

meanwhile, a number of
smaller transactions kept up
m&a deal flow across latin
america. a revaluation in latin
companies - particularly in
Brazil - over recent years has
"put everyone into an m&a
mood", noted one investment
banker. Weaker valuations
have pushed sellers to move
forward with deal, a trend that
is likely to continue, he adds.
the energy sector was
particularly busy. Empresa
de Energia de Bogotá (eeB)
bought an additional 31.92% of
subsidiary Transportadora
de Gas Internacional (tGi)
from citi Venture capital
international for $880 million,
bringing its ownership in the
colombian pipeline operator to
99.97%. eeB plans to invest $7.5
billion in the next four years
to expand its operations, the
statement said.
next door Peruvian pipeline
company Transportadora de
Gas del Perú (tGP) was also an
acquisition target. the Canada
Pension Plan Investment
Board (cPPiB) paid $607m
for a 23.6% stake in the firm.
the canadian firm, which
already owned a 10.4% stake
in tGP, said it would buy small
stakes from minority owners
to increase its ownership in the
company to 36.8%.
elsewhere, Endesa Chile
became the full-owner of
GasAtacama after acquiring
a 50% stake in the energy
generator and transporter from

M&A rank by volume, year to April 25, 2014
Locals win on number of deals
Rank

Advisor

1
2
3
4
5
6
6
8
9
10

credit Suisse
itaú BBa
Bofa merrill lynch
BtG Pactual
citi
Deutsche Bank
Bmo capital markets
morgan Stanley
Goldman Sachs
Rothschild
Total

Value $m

# Deals

12,311
11,313
9,831
7,772
6,354
5,850
5,850
4,864
4,828
2,134

7
26
8
14
5
2
1
8
8
5

35,245

406

Investment banking fees revenue, year to April 25, 2014
On fees, internationals balance up
Rank

Bank

1
2
3
4
5

Credit Suisse
Itaú BBA
JPMorgan
Citi
Bradesco BBI
Total

Revenue $m

% Share

45
43
38
37
27

9.8
9.5
8.4
8.0
5.9

458

100.0

Source: Dealogic; Includes M&A, ECM, DCM and loans fee revenue

private equity fund Southern
cross for $309 million. Cemig
agreed to pay 835 million reais
($357 million) for an 83% stake
in an investment firm that
owns 12.4% of Santo antônio
energia's parent Madeira
Energia.
cemig is buying the new
stake in investment firm SaaG
from Andrade Gutierrez
Participações. the deal will
be structured through Brazilian
equity investment funds - fiPs
- such that cemig will not own

more than 50% of any vehicle.
cemig has adopted a policy
of partnering with fiPs for
acquisitions to optimize capital.
Pacific Rubiales sold
a 5% stake in colombia's
pipeline company ocensa to a
consortium led by US private
equity fund Darby for $385
million. Peru-based Inkia
Energy bought stakes in four
nicaraguan power firms from
AEI Power, expanding the
firm's geographic reach. LF

May/June 2014 - l atinfina nce.com 9
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