LatinFinance - September/October 2013 - 29

sizeable deals — including IPOs of BB Seguridade and Smiles — in their domestic market,
even though it has fallen from investors’
favor. The two banks are also increasingly
emerging to manage transactions in Mexico
and the Andes.
Indeed, the trend in both ECM and DCM
is shifting away from Brazil, particularly to
new names from the Andes.
M&A: Slower than hoped for
Earnings from M&A transactions, however,
have taken a turn for the worse this year.
Deals netted LatAm bankers $293 million
through September 6, down from $485
million in the same period in 2012. This is
on the back of $97 billion in announced
volume, down from $131 billion.
“M&A activity in Latin America is strongly correlated with the commodity cycle,”
says Hernan Rissola, head of Latin America
M&A at HSBC. “Commodities have weakened, and Brazil has weakened. This has
meant a significant deceleration in activity.”
Morgan Stanley leads the fee tables
compiled by Dealogic — which rely on estimates — with $46 million, followed by Credit
Suisse and BTG Pactual.
Domestic consolidation remains a theme.
In Brazil, professional educational companies Anhanguera and Kroton announced a

LISANDRO MIGUENS, JP MORGAN

“SOME INTERNATIONAL
BANKS CAME BACK
STRONG AFTER THE
2008 CRISIS, LOCAL
BANKS CONTINUE TO
STRENGTHEN THEIR IB
PRACTICES AND SOME
LOCAL BANKS ARE
EXPANDING THEIR
IB FRANCHISES
REGIONALLY. ALL OF
THIS IS PUTTING SOME
PRESSURE ON FEES”

$2.64 billion merger, and meatpacker JBS
bought poultry producer Seara for $2.74
billion. In Colombia, mobile telecoms firms
UNE and Colombia Móvil, meanwhile,
plumped for a $1.11 billion tie-up.
But, by and large, dealmaking has struggled as economic woes mount for emerging
markets — and Brazil especially — this year.
“We remain positive on Brazil in the medium term, but we believe that investment
banking volumes and wallet might suffer
in the remainder of 2013 and 2014,” says
Miguens.
Bankers nevertheless still see plenty of
investor interest, and so remain optimistic
given what many see as sound fundamentals across most of the region’s economies.
“In terms of the attractiveness of assets and
their markets, the interest is still there,”
Rissola says. “The growth is still there. The
issue, which maybe wasn’t such an issue
before, is valuation. This is particularly
true in the case of Brazil. Now people are
questioning the multiples that were thrown
around one year ago.”
Rosen notes a strong pickup in M&A
dialogue in last few months, which he says
could mean more activity into next year.
“M&A has been very slow in Latin America,”
he says. “You could see a change to that in
the next six to nine months.”

Understanding
We are proud to have assisted in two of this year’s
award-winning infrastructure transactions.
As one of the most active international law firms
in Latin America, Mayer Brown brings to clients
in the region the understanding, experience and
creativity needed to get deals done.

OAXACA II & IV
Best Renewable
Energy Financing
VIA PARQUE RIMAC
TOLL ROAD
Best Infrastructure
Financing: Andes

Americas | Asia | Europe | www.mayerbrown.com

September/October 2013 - L ATINFINA NCE.COM 29


http://www.mayerbrown.com http://www.mayerbrown.com http://www.LATINFINANCE.COM

LatinFinance - September/October 2013

Table of Contents for the Digital Edition of LatinFinance - September/October 2013

Latin Finance - September/October 2013
Contents
Front notes
People news
Debt news
Equity news
M&A news
After the storm
Advantage Mexico
Treading water
New structures
Mexico
Regaining the Initiative
Deficit Ahead
Building up
Switching Course
Brazil
Work in progress
Extreme makeover
Mind the gap
Brazilian life insurance
Andean
Breaking the fall
Reaching out
Market movers
Paraguay
Smoothing the cycles
Thinking big
Parting Shot
LatinFinance - September/October 2013 - Latin Finance - September/October 2013
LatinFinance - September/October 2013 - Cover2
LatinFinance - September/October 2013 - Contents
LatinFinance - September/October 2013 - 2
LatinFinance - September/October 2013 - 3
LatinFinance - September/October 2013 - Front notes
LatinFinance - September/October 2013 - 5
LatinFinance - September/October 2013 - People news
LatinFinance - September/October 2013 - 7
LatinFinance - September/October 2013 - Debt news
LatinFinance - September/October 2013 - 9
LatinFinance - September/October 2013 - Equity news
LatinFinance - September/October 2013 - 11
LatinFinance - September/October 2013 - M&A news
LatinFinance - September/October 2013 - 13
LatinFinance - September/October 2013 - 14
LatinFinance - September/October 2013 - 15
LatinFinance - September/October 2013 - 16
LatinFinance - September/October 2013 - 17
LatinFinance - September/October 2013 - 18
LatinFinance - September/October 2013 - 19
LatinFinance - September/October 2013 - 20
LatinFinance - September/October 2013 - 21
LatinFinance - September/October 2013 - 22
LatinFinance - September/October 2013 - 23
LatinFinance - September/October 2013 - After the storm
LatinFinance - September/October 2013 - 25
LatinFinance - September/October 2013 - Advantage Mexico
LatinFinance - September/October 2013 - 27
LatinFinance - September/October 2013 - Treading water
LatinFinance - September/October 2013 - 29
LatinFinance - September/October 2013 - 30
LatinFinance - September/October 2013 - New structures
LatinFinance - September/October 2013 - 32
LatinFinance - September/October 2013 - 33
LatinFinance - September/October 2013 - 34
LatinFinance - September/October 2013 - 35
LatinFinance - September/October 2013 - 36
LatinFinance - September/October 2013 - 37
LatinFinance - September/October 2013 - 38
LatinFinance - September/October 2013 - 39
LatinFinance - September/October 2013 - 40
LatinFinance - September/October 2013 - Mexico
LatinFinance - September/October 2013 - Regaining the Initiative
LatinFinance - September/October 2013 - 43
LatinFinance - September/October 2013 - Deficit Ahead
LatinFinance - September/October 2013 - 45
LatinFinance - September/October 2013 - Building up
LatinFinance - September/October 2013 - 47
LatinFinance - September/October 2013 - 48
LatinFinance - September/October 2013 - 49
LatinFinance - September/October 2013 - 50
LatinFinance - September/October 2013 - 51
LatinFinance - September/October 2013 - Switching Course
LatinFinance - September/October 2013 - 53
LatinFinance - September/October 2013 - 54
LatinFinance - September/October 2013 - 55
LatinFinance - September/October 2013 - 56
LatinFinance - September/October 2013 - Brazil
LatinFinance - September/October 2013 - Work in progress
LatinFinance - September/October 2013 - 59
LatinFinance - September/October 2013 - 60
LatinFinance - September/October 2013 - 61
LatinFinance - September/October 2013 - Extreme makeover
LatinFinance - September/October 2013 - 63
LatinFinance - September/October 2013 - 64
LatinFinance - September/October 2013 - 65
LatinFinance - September/October 2013 - 66
LatinFinance - September/October 2013 - Mind the gap
LatinFinance - September/October 2013 - 68
LatinFinance - September/October 2013 - 69
LatinFinance - September/October 2013 - Brazilian life insurance
LatinFinance - September/October 2013 - 71
LatinFinance - September/October 2013 - 72
LatinFinance - September/October 2013 - Andean
LatinFinance - September/October 2013 - Breaking the fall
LatinFinance - September/October 2013 - 75
LatinFinance - September/October 2013 - 76
LatinFinance - September/October 2013 - Reaching out
LatinFinance - September/October 2013 - 78
LatinFinance - September/October 2013 - 79
LatinFinance - September/October 2013 - 80
LatinFinance - September/October 2013 - 81
LatinFinance - September/October 2013 - Market movers
LatinFinance - September/October 2013 - Paraguay
LatinFinance - September/October 2013 - Smoothing the cycles
LatinFinance - September/October 2013 - 85
LatinFinance - September/October 2013 - Thinking big
LatinFinance - September/October 2013 - 87
LatinFinance - September/October 2013 - Parting Shot
LatinFinance - September/October 2013 - Cover3
LatinFinance - September/October 2013 - Cover4
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