Latin Finance - March/April 2011 - 12

M&A

More For Less

in stock and cash. Norsemeont’s main asset is the Constancia copper and gold project in Peru. HudBay says its future In the year through February 23, a total of 212 M&A deals worth combined copper production is expected to grow by around 145% between 2011 and 2016, as a result of bringing Constancia $18.7 billion was reported, according to Dealogic. The number into full production. Constancia will also contribute to HudBay’s of deals is higher than the 206 deals done as of the same date gold output. RBC Capital Markets is advising HudBay while in 2010, but the value pales against last year’s $65.8 billion in corporate ﬁnance ﬁrm Cutﬁeld Freeman helped Norsemont. volume in the corresponding period, Dealogic data show. In the oil sector, Gran Tierra Energy, a Canada-based oil The M&A wallet also contracted, but not by as much. In exploration company, has acquired Petrolifera Petroleum the year to February 23, banks made $61 million in fees, down for approximately $195 million. from $103 million from M&A in the corresponding period of 2010. M&A Rank by Volume, Year to February 23 Petrolifera has an interest in 11 exploration and production blocks in Itaú leaps ahead Leading this year’s ﬁeld, Ashmore Colombia, Peru and Argentina. RBC is Energy International (AEI) announced Rank Bookrunner Value $m # Deals representing Petrolifera, while Gran the sale of 10 operating companies to 2 Goldman Sachs 5,261 10 Tierra did not use an advisor. nine acquirers in a $4.8 billion trade 3 Citi 4,353 7 Among other notable deals was that represented 80% of its assets. 4 Santander 4,112 6 the $2.3 billion merger of Mexican Goldman Sachs and Itaú had been 5 Rothschild 2,484 3 bottling companies Embotelladoras advising the Houston-based energy Arca and Grupo Continental. 6 HSBC 2,294 1 company on its asset divestiture, Estructura Partners advised Arca, which included companies in Brazil, 6 Estructura Partners 2,294 1 while HSBC advised Contal. Arca is Argentina, and Chile. 8 JPMorgan 1,920 4 Mexico’s second largest Coca-Cola The largest component of the 9 Bradesco 1,369 3 bottler. deal is the sale of a 99.86% stake in 10 BTG Pactual 1,227 5 Brazilian power distribution company Subtotal 14,562 28 Elektro to Spain’s Iberdrola for $2.4 Total 18,673 212 The health sector also saw its share of billion. Citi and Santander advised Total 5,327 13 deals. In Peru, Israeli pharmaceutical the buyer. AEI also sold 50% of its Source: Dealogic company Teva was on the buyer and Chilquinta subsidiary in Chile and a seller sides. It purchased Peruvian 37.97% stake in Luz del Sur in Peru to drugmaker and marketer Infarmasa, Sempra Energy for $875 million. M&A Rank by Fees, Year to February 23 for an undisclosed amount from Corﬁcolombiana, EEB and two Itaú pips Credit Suisse to post Colombia-based private equity ﬁrm private funds meanwhile took Rank Bookrunner Revenue $m % Share Altra Investments and The Rohatyn a 52.13% stake in Promigas, a 1 Banco Itaú 10 16.30 Group, which bought the company Colombian natural gas company for 2 Credit Suisse 10 15.80 in 2007. A source close to the sellers about $790 million. EEB will also get 3 Goldman Sachs 9 14.30 says they made a 30% return on a 60% stake in Peruvian natural gas 4 JPMorgan 8 12.60 investment. distributor Calidda for $350 million. Teva says it intends to merge Medellin’s EPM will meanwhile buy 5 Rothschild 5 7.70 Infarmasa with Medco, another 51% of Panamanian company ENSA Subtotal 41 66.70 company it owns in Peru, and that and an 86.41% stake in DelSur in El Total 61 100.00 the resulting entity will be the second Salvador for $200 million. Source: Dealogic largest pharmaceutical ﬁrm in the Elsewhere, Argentine power country. Credit Suisse advised the sellers. company Pampa Energía got electric utility Aeseba for $50 Teva also sold drugstore chain Boticas Torres de Limatambo million and a majority stake in power distributor Emderesa for (BTL) to Peru-based Química Suiza for just under $75 million, $90 million. according to a banker close to the company. A Peru-based banker AEI is retaining assets in Asia and LatAm representing says Teva sold the company because it did not consider it part of approximately $190 million in Ebitda and $400 million in net its core business. BTL had originally been purchased by Ivax in debt. June 2004 from Peru’s Assa Investments for around $10 million. Elsewhere in the power sector, Neoenergia has acquired Ivax was later taken over by Teva in 2006. Química Suiza EnergyWorks of Brazil from Iberdrola for 150 million reais. The also owns the Mifarma chain, with over 120 stores. BTL has 183 target company consists of six gas-ﬁred power plants, according stores. The deal was privately negotiated. LF to Neoenergia, an investor in the Brazilian energy sector.

Cross-Border Health

Natural Resource Targets

UPDATE
For daily M&A news, see www.latinﬁnance.com

Canadian miner HudBay Minerals has agreed to acquire peer Norsemont Mining in a deal worth 520 million Canadian dollars

12 LATINFINANCE

March/April 2011

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Latin Finance - March/April 2011

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