LatinFinance - January/February 2013 - 14

M&A

Branching out
LatAm M&A volume rose slightly in 2012 mostly due to
ASUR chairman Fernando Chico Pardo. The deal to block Chico
persistent international investor interest – especially from
Pardo is expected by analysts to reach $600 million. Bank of
the US – in the region. In many sectors, competition between
America Merrill Lynch is advising ADM.
emerging regional names for investment has driven up prices.
A few LatAm corporates continue to look to invest outside of
the region. All of these trends, plus the continued selloff by
Elsewhere in Mexico, Diageo has given up its long quest to take
Europeans, look set to carry into this year.
control of Tequila maker José Cuervo. The two – long-time
Coca-Cola Femsa joins other
distribution partners – failed to
LatAm blue-chips looking for
agree on a price.
M&A Rank by Volume, Full Year 2012	
strategic acquisitions outside of the
Maxcom Telecomunicaciones
JPMorgan tops the charts		
region. It intends to pay $689 million
was finally sold, to private equity
in cash to acquire 51% of Coca-Cola
firm Ventura Capital Privado. The
Rank
Advisor
Value $m
# Deals
Bottlers Philippines from The Cocatotal value of the deal was expected
1
JPMorgan
55,937
33
Cola Company, in its first buy outside
to be $270 million, if a debt
2
BAML
51,552
28
of Latin America.
exchange is included. HSBC advised
3
Credit Suisse
39,512
54
Analysts said the price was
the Mexican telecom and Vace
4
Lazard
37,909
21
reasonable, at 13 times 2012 Ebitda.
Partners the buyer.
5
Morgan Stanley
34,596
15
Coca-Cola Femsa has an option to
Canada Pension Plan Investment
6
Deutsche Bank
34,465
22
acquire the remaining 49% of the
Board, Singapore’s GIC sovereign
7
Goldman Sachs
32,661
40
bottler for the next seven years, as
wealth fund, GIC’s Global Logistic
8
Itau BBA
27,480
56
well as one to sell its stake back to
Properties unit and the China
Coca-Cola after six years, both at the
9
Barclays
27,379
3
Investment Corp. teamed up to
same multiple. Allen & Company and
spend 2.9 billion reais on a portfolio
10
BTG Pactual
26,959
82
Rothschild were financial advisers to
of Brazilian logistics facilities from
Total
175,311
1,759
Coca-Cola Femsa.
asset manager Hemisfério Sul
Source: Dealogic
Mexico’s Afore pension funds
Investimentos. Credit Suisse advised
continued to reduce in number
the target.
M&A Rank by Fees, Full Year 2012	
with Banorte winning the battle
Bunge sold its fertilizer
Brazilians earn most
for the long-awaited sale of BBVA
operations in Brazil to Norway’s
Bancomer’s Afore. The $1.6 billion
Yara International for $750
Rank
Bank
Revenue $m
% Share
deal makes the combination of
million. Bunge had struggled to
1
BTG Pactual
108
85
Banorte XXI and Bancomer, Mexico’s
realize the potential from the
2
Credit Suisse
76
41
largest Afore. As in its previous
Brazilian blending and distribution
3
Itau BBA
64
62
purchase of Afore XXI, Banorte
operations following the 2010 sale
4
JPMorgan
52
18
teamed up with the IMSS Social
of Brazilian phosphate mining assets
5
Deutsche Bank
44
14
Security Institute. Goldman Sachs
to Vale. Analysts say Yara is in a
Total
644
100
advised BBVA and Morgan Stanley
better position to turn things around
Source: Dealogic
Banorte.
and that the EV/Ebitda of 10 times,
The pension units in Chile,
although high, would be worth it if
Colombia, and Peru were still waiting
synergies could be realized.
to be sold.
Chilean casino and hotel operator Enjoy has agreed to
Irish credit information provider Experian spent 3.1 billion
acquire 45% of Baluma, a subsidiary of Caesars operating the
reais ($1.5 billion) to buy the remaining 29.6% of Brazilian
Conrad Punta Del Este Resort in Uruguay, for $140 million in
credit bureau Serasa from a group of banks. Change to
cash and stock.
legislation in Brazil that extends the amount of data used in
US-based Caesars gets shares equal to a 10% position in
credit checks means Serasa is likely to continue to grow quickly.
Enjoy, to be issued through a capital raising held before the deal
Goldman Sachs and Morgan Stanley advised Experian.
closes. Enjoy may also, between years three and five, acquire
Ally Financial sold its Brazil, Mexico, Colombia and Chile
the rest of Baluma. Enjoy was advised by Deutsche Bank. LF
operations as part of a $4.2 billion global sale. The company
formerly known as GMAC sends the funds back to General
Motors, the company that spawned it in 2006.
>
UPDATE
As of December, Mexico’s Gruma planned to use its right of
first refusal to buy a 23% stake of itself owned by Archer Daniels
For daily M&A news, see www.latinfinance.com
Midland that the US agriculture operator had agreed to sell to

Diageo shuns tequila

14 LatinFinance

M&A.indd 14

January/February 2013

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