Deal Drivers: Americas Q1 2021 - A spotlight on mergers and acquisitions trends in 2021 - Datasite
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Deal Drivers: Americas Q1 2021
A spotlight on mergers and
acquisitions trends in 2021
Contents
Foreword 03
Outlook 04
Summary 05
Canada 08
Western US 12
Midwestern US 16
Southern US 20
Northeastern US 24
Brazil 28
Latin America & the Caribbean (excl. Brazil) 32
About this report 36
2
Foreword: North-South divide
underpinning uneven recovery
After a challenging year that saw deal activity freeze through The US has led the way, with deal value more than
H1 2020 as the outbreak of COVID-19 forced countries into doubling year-on-year in Q1 2021 to reach US$658.73bn.
lockdowns, the M&A market in the Americas has reset and The conclusion of the US presidential election and the
recovered, posting steady deal numbers through Q1 2021. inauguration of Joe Biden have given capital markets
Aggregate deal value for the region reached US$658.73bn more certainty. The country has also benefited from a mass
from 1,961 transactions announced in Q1 2021, up from roll-out of COVID-19 vaccines, with almost 100m people in
US$236.77bn from 1,918 deals in the same period last year. the US fully vaccinated through the early months of this year.
Outside of North America, deal markets in Brazil and
But while the headline gains in M&A elsewhere in Latin America have also seen improvement
activity offer reasons for optimism in in Q1 2021, but the rebound hasn’t been as pronounced.
the deal community, the recovery has The outlook for the rest of the year is also less certain, with
been noticeably uneven. a second wave of COVID-19 infections hitting Brazil and
its neighbors, prompting another round of containment
measures. This has impacted economic growth forecasts
The M&A rebound has been more pronounced in North and is likely to color M&A activity in South America through
America, where dealmakers in the US and Canada have the rest of 2021.
benefited from a bounce in stock markets and reduced
numbers of COVID-19 cases. The uneven nature of the M&A recovery that has
characterized the Americas over the first quarter of this
year is more than likely to remain a defining theme for the
region in the coming months.
3
Outlook: Americas Heat chart based on potential companies for sale
Midwestern US
& the Caribbean
heat chart
Northeastern
Latin America
Southern US
Western US
Canada
TOTAL
Brazil
US
Financial services 24 322 199 359 463 37 15 1,419
According to our forward-looking heat chart, which illustrates
the distribution of ‘companies for sale’ stories on the 34 347 119 191 293 45 18 1,047
TMT
Mergermarket intelligence tool, financial services is the
sector in which dealmakers should expect to see the most 24 176 102 171 222 23 1 719
Pharma, medical & biotech
activity in the Americas. In Q1, the intelligence tool logged
1,419 stories about financial services companies coming to
Industrials & chemicals 11 110 94 136 130 11 2 494
market in the Americas, representing almost 30% of the 5,015
stories overall. After financial services, technology, media and
Business services 7 90 39 138 106 22 7 409
telecoms (TMT) logged the second-most ‘for sale’ stories with
1,047 (21%), followed at some distance by pharma, medical &
Consumer 12 79 52 70 92 29 13 347
biotech (PMB) with 719 (14%).
Energy, mining & utilities 21 37 16 38 30 30 12 184
The heat chart is dominated by the US, with other economies
much more tepid by comparison. Combined, the four US
Leisure 1 33 9 34 29 7 3 116
regions accounted for 4,549 ‘for sale’ stories, or more than
90% of the total. Several key sectors, from financial services
Transportation 4 12 11 35 13 10 2 87
to industrials & chemicals (I&C), are indicating red-hot
activity in the US, especially in the Northeast of the country.
Real estate 4 22 9 22 17 5 3 82
That region, home to the New York market, contributed 463
financial services stories, almost one-third of all such stories
across the Americas. In the Western US region, TMT stories Construction 5 4 12 9 14 44 Warm Hot
Cold
are flourishing, accounting for 347 of the 1,047 total such
stories from the Americas. Agriculture 8 10 5 2 4 4 3 36
Note: The Intelligence Heat Charts are based on
‘companies for sale’ tracked by Mergermarket in the
Defense 8 5 14 4 31 respective regions between October 1, 2020 and
March 31, 2021. Opportunities are captured according
to the dominant geography and sector
TOTAL 150 1,251 664 1,222 1,412 237 79 5,015 Source: Mergermarket
of the potential target company.
4
Summary: A tale of two continents
Despite the diverging macroeconomic performance across Paving the way to recovery Americas M&A activity,
the region, M&A activity for the Americas as a whole was Dealmaking in the US has been supported by a recovering 2018-Q1 2021
strong in Q1 2021, reflecting the ongoing release of pent-up economy, a bullish outlook for GDP growth, and rising stock
demand among dealmakers to deploy capital and bring deals markets. Morgan Stanley has estimated US growth of 8.1%
that had been delayed through much of the pandemic period for Q1 2021, with the economy expected to recover to pre- 2,500 700
back to market. pandemic levels by Q2.
600
M&A deal value for the Americas surged from 1,918 deals
worth US$236.77bn in Q1 2020 to 1,961 deals valued at
A decline in COVID-19 infections, tied to a 2,000
US$658.73bn in Q1 2021, the largest quarterly value for the successful vaccination program, has boosted 500
region on record in the last three years. the recovery, as has significant economic
Deal value US$(bn)
1,500
stimulus in the form of a US$1.9tn spending 400
Deal volume
The US market drove the deal uptick, with all the regions in the
country delivering strong growth in deal value. Overall, US deal
plan led by the new Biden administration.
300
value was up from US$213.3bn in Q1 last year to US$562bn in 1,000
Q1 2021. US stock markets have responded positively, with the Dow
Jones Industrial Index and S&P 500 cresting all-time highs in Q1 200
and showing gains of 10.26% and 9.9% respectively for the year 500
to date through early April. 100
Canadian dealmakers have also benefited from recovering GDP
0 0
figures and buoyant stock markets. Canada saw deal volumes Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
and values jump from 144 deals worth US$13.3bn in Q1 2020 2018 2019 2020 2021
to 181 deals worth US$56.93bn in Q1 2021. Deal volume Deal value US$(bn)
Source: Mergermarket
5
Bucking virus tumult Americas top sectors by value I Q1 2021
In Brazil and Latin American, deal activity has also
US$(m)
increased through Q1 2020, despite ongoing disruption
TMT 206,103
from COVID-19—vaccination rates in the region have Industrials & chemicals 100,828
lagged behind North America and case numbers continue Financial services 99,456
to surge. This has taken a toll on stock market sentiment Pharma, medical & biotech 54,692
in Latin America, with the S&P Latin America 40 down 6% Transportation 48,443
for the year. This same sentiment may yet extend to M&A
through 2021.
Americas top sectors by volume I Q1 2021
But to start the year, activity was strong as M&A markets Deal count
reopened. In Brazil, deal volume and aggregate value TMT 548
climbed to 112 deals valued at US$21.7bn in Q1, up from Industrials & chemicals 300
87 deals worth US$4.9bn in Q1 2020. For Latin America & Business services 257
the Caribbean (excl. Brazil), deal volumes over the same Pharma, medical & biotech 239
Financial services 170
comparative period dipped from 78 deals to 48 deals, but
deal value showed a more than three-fold increase, rising
from US$5.3bn in Q1 2020 to more than US$18bn in Q1 of Americas top bidders by value I Q1 2021
this year.
US$(m)
USA 460,806
Concerning sectors, TMT, I&C, and financial services
Canada 81,095
were the dominant industries in terms of deal flow. TMT Ireland (Republic) 46,679
deals accounted for more than one-quarter (548) of all Brazil 14,749
transactions announced in Q1 (1,961) in the Americas, and Japan 10,350
almost one-third of the aggregate value (US$206.1bn).
I&C came in a distant second, with the aggregate value for
Americas top bidders by volume I Q1 2021
the 300 industrials deals totaling US$100.8bn. Financial
services delivered deal value of US$99.5bn, but from only Deal count
170 transactions. USA 1,451
Canada 158
Brazil 83
United Kingdom 54
France 21
6
Irish outlier in domestic crowd Americas top 10 announced deals, Q1 2021
In terms of inbound bidder activity, the US, Canada, and Brazil
delivered the highest volumes, implying a focus on domestic
Announced Status* Bidder company Target company Sector Vendor company Deal value
and intraregional transactions. One outlier was the Republic of date (US$m)
Ireland, which was the third-most active inbound bidder with
1 10-Mar-21 P AerCap Holdings N.V. GE Capital Aviation Financial General Electric Company 31,000
total deal value of US$46.67bn. Services LLC services
2 21-Mar-21 P Canadian Pacific Railway Ltd Kansas City Southern Transportation 28,643
This was a result of the involvement of an Irish bidder in the
largest Americas deals of the year, which saw AerCap Holdings 3 15-Mar-21 P Rogers Communications Inc. Shaw Communications TMT 20,424
Inc.
acquire GE Capital Aviation Services from parent company
General Electric in a deal worth US$31bn. The deal will create 4 06-Jan-21 P OptumInsight, Inc. Change Healthcare Inc. TMT Blackstone Group L.P. 12,550
an industry leader across the aircraft leasing business, from
large aircraft and engines to regional jets and helicopters. 5 22-Feb-21 P Churchill Capital Corp IV Atieva, Inc. Industrials & 11,750
chemicals
GE Capital Aviation Services was one of six US targets 6 24-Feb-21 P ICON plc PRA Health Sciences, Inc. Pharma, medical 11,487
& biotech
among the 10 biggest transactions in the Americas. In the
7 08-Mar-21 P Apollo Global Management, LLC Athene Holding Ltd Financial 10,921
second largest Americas deal, Canadian Pacific Railway paid services
US$28.6bn for Kansas City Southern, the cross-border railroad
8 01-Mar-21 P Hapvida Participacoes e Notre Dame Intermedica Financial Bain Capital, LP. 10,063
operator. A Canadian target featured in the third-largest deal in Investimentos SA Participacoes S.A. services
the region, with Rogers Communications bidding US$20.4bn for 9 10-Feb-21 P Brookfield Infrastructure Partners Inter Pipeline Ltd (80.35% Transportation 9,887
telecoms group Shaw Communications. L.P. Stake)
10 31-Mar-21 P Hitachi, Ltd. GlobalLogic, Inc. TMT Canada Pension Plan 9,600
Investment Board; Partners
Group Holding AG
*C = Completed; P = Pending
Source: Mergermarket
7
Canada
Canada cresting the wave of a
hopefully sustainable recovery
Canada’s economy and stock markets showed positive signs On the up and up
in Q1 2021 as the country rebounded from 2020’s COVID-19
Canada M&A activity, Despite the recent surge in coronavirus cases, deal activity
disruption. The National Bank of Canada has revised its GDP
2018-Q1 2021 in Canada was robust through Q1 2021, recording a sharp
growth forecast for 2021 upwards from 5.5% to 6%, while the increase on comparative periods in recent years.
Toronto Stock Exchange has gained 10.14% for the year so far 250 60
through early April. Deal volume and aggregate value in Q1 2021 came in at 181
deals worth almost US$57bn, up from the 144 transactions
50
valued at US$13.3bn in Q1 2020. Deal value was also more
Canada has seen COVID-19 infection 200
than double the US$23.3bn recorded in Q1 2019.
numbers rise through late Q1 and early Q2
40
2021, mainly as result of new virus variants The positive figures for Q1 2021 reflect building momentum
Deal value US$(bn)
150
and the slow rollout of vaccines. But the in Canada’s deal markets. After falling to just US$3.1bn from
Deal volume
98 deals in Q2 2020, reflecting the impact of the first round
country has secured enough doses to 30
of lockdowns, deal value increased to US$6.9bn in Q3 2020
inoculate its population many times over, 100 and then US$35.4bn in Q4 2020. Whether this ascendant
offering some hope that case numbers will 20 trend can hold through the rest of 2021 is not yet clear –
soon decline. the Q1 2021 deal value figure represents by far the highest
50
quarterly total of the last three years in Canada.
10
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021
Deal volume Deal value US$(bn)
Source: Mergermarket
9
Canada top sectors by value I Q1 2021 Telecoms rules changes The high TMT value figure was thanks in large part
The TMT sector was the largest contributor to overall deal to Rogers Communications paying US$20.4bn for
US$(m)
value in Q1, accounting for US$26.2bn. This was almost triple Canadian telecoms group Shaw Communications, the
TMT 26,235
Transportation 10,068 the US$10.1bn attributed to the second-place transportation largest Canadian deal from Q1. The transaction will
Industrials & chemicals 8,306 sector. I&C came in third by value, recording US$8.3bn worth create the second-largest cable and cellular operator
Energy, mining & utilities 7,203 of deals. in Canada and follows calls from the government
Pharma, medical & biotech 1,973 for the country’s three biggest telecom groups, who
In terms of deal volumes, TMT also led the way with 42 deals, control approximately 90% of the market, to reduce
followed by energy, mining & utilities (EMU) with 36 deals, prices on some services plans by up to one-quarter.
Canada top sectors by volume I Q1 2021
and then I&C with 24.
Deal count
TMT 42 TMT accounted for three of the seven largest deals
Energy, mining & utilities 36 announced in Canada, with I&C delivering four deals in the
Industrials & chemicals 24 top 10. The EMU, consumer, and transportation sectors
Business services 22 accounted for one each.
Consumer 14
Canada top bidders by value I Q1 2021
US$(m)
Canada 42,000
USA 10,241
Australia 2,462
United Kingdom 1,479
South Korea 600
Canada top bidders by volume I Q1 2021
Deal count
Canada 98
USA 57
United Kingdom 9
France 4
Australia 3
10Canada top 10 announced deals, Q1 2021
Announced Status* Bidder company Target company Sector Vendor company Deal value
Consolidation drives in fragile markets
date (US$m) The relatively high aggregate value of transportation deals
in Q1 was also boosted by one large announcement, as
1 15-Mar-21 P Rogers Communications Inc. Shaw Communications Inc. TMT 20,424
Brookfield Infrastructure Partners bid almost US$10bn for
2 10-Feb-21 P Brookfield Infrastructure Inter Pipeline Ltd (80.35% Transportation 9,887 an 80.5% stake in Inter Pipeline, the Calgary-based energy
Partners L.P. Stake) infrastructure company focused on the transportation and
3 10-Feb-21 C ARC Resources Ltd. Seven Generations Energy Energy, mining & 3,720 storage of energy products. The bid was hostile and initially
Ltd. utilities
rebuffed by the Inter Pipeline board for undervaluing the
4 04-Mar-21 P Sustainable Opportunities DeepGreen Metals Inc. Industrials & 2,250 company. The market is waiting to see whether Brookfield
Acquisition Corp chemicals
will up its bid or whether the company can find alternatives
5 02-Feb-21 P IFM Investors; Ontario Enwave Energy Corp. Industrials & Brookfield Infrastructure 2,187
following a strategic review.
Teachers' Pension Plan chemicals Partners L.P.
6 05-Jan-21 C Constellation Software, Inc. Topicus.com Inc TMT Constellation Software, Inc. 2,031
The third-largest Canadian deal in Q1 2021 came in the
(Shareholders)
EMU sector, with oil & gas player ARC Resources paying
7 24-Feb-21 P Diligent Corporation Galvanize Inc. TMT Norwest Venture Partners 1,000
US$3.7bn for Seven Generations Energy to form the sixth
largest oil & gas company in Canada. The deal reflects a
8 23-Feb-21 P The Estee Lauder Companies Deciem Inc. (47% Stake) Consumer 1,000
Inc trend of consolidation across the industry as companies
9 16-Feb-21 P Peridot Acquisition Corp. Li-Cycle Corp. Industrials & 975 seek opportunities to build scale and cut costs in a
chemicals recovering but still volatile oil & gas market.
10 09-Mar-21 P Secure Energy Services Inc. Tervita Corporation Industrials & 940
chemicals
Looking ahead into 2021, financial services, TMT, and
*C = Completed; P = Pending
PMB are expected to see the most M&A activity, according
to the Mergermarket heat chart. There are 24 financial
services and PMB companies each reported to be up for
sale in Canada, with 34 TMT businesses reported to be
seeking buyers.
Source: Mergermarket
11Western US
Spate of large deals points to
return to pre-pandemic form
Through the first three months of this year, the Western US M&A TMT dominates proceedings Western US M&A activity,
market posted the second-highest quarterly deal value total US bidders accounted for most of the investment into the 2018-Q1 2021
since 2018, with only Q4 2020 coming in higher. region by some distance, with deals to the value of US$175.1bn,
around 90% of the total for the quarter. Japan was the next
The aggregate deal value of US$196.6bn in Q1 2021 was close largest inbound bidder by value, contributing US$10.4bn worth 600 250
to quadruple the US$57.21bn posted during the same period of deals. Switzerland ranked third, but with only US$3.27bn of
last year. Deal volume was also up year-on-year, rising to 516 deals. These sums arose from very few deals, with Japanese and
500
deals from 446 transactions in Q1 2020. No other quarter of Swiss buyers each involved in four bids in Q1 in the Western US. 200
the last three years has logged a higher volume of transaction
announcements. The TMT industry was the largest contributor to deal value in
400
the region, coming in at US$79.2bn in Q1, up more than three-
Deal value US$(bn)
150
fold from the US$25.1bn posted by the sector in Q1 2020,
The strong numbers for Q1 confirm the
Deal volume
when the pandemic first began to inhibit M&A activity globally. 300
recovery in M&A markets in this key US region I&C was the next biggest sector by value, with US$56.9bn of
through the pandemic period. Deal volume transactions, a massive uptick from the US$2.8bn figure for 100
and value collapsed to just 286 transactions Q1 2020. 200
worth US$32.4bn in Q2 2020 at the peak TMT was also the busiest sector by volume, with 191 deals 50
of COVID-19 uncertainty but has recovered (almost 40% of the total), followed by PMB with 77 deals, and 100
steadily since. I&C with 70 transactions. Moreover, TMT and I&C each delivered
four of the region’s 10 largest deals, with financial services and
0 0
business services accounting for the remaining two. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Q3 2020 saw 411 deal announcements worth US$176.1bn, 2018 2019 2020 2021
and the year closed strongly in Q4, with 487 deals worth Deal volume Deal value US$(bn)
US$217.2bn. Q1 2021 represents, dealmakers hope, a return to
form for a US with new political leadership. Source: Mergermarket
13SPAC revolution SPACs, also known as blank-check companies, which raise W-US top sectors by value I Q1 2021
The largest deal in the Western US in Q1 saw Churchill money on stock markets to invest via M&A transactions, are
US$(m)
Capital, a special purpose acquisition company (SPAC) expected to remain influential players in US deal markets
TMT 79,215
headed by veteran dealmaker Michael Klein, acquire Atieva, across all regions, having raised more money in the first three Industrials & chemicals 56,913
the group that runs electric vehicle start-up Lucid Motors, for months of 2021 than in 2020 as a whole. Business services 18,845
US$11.8bn. When announced, it was the largest SPAC deal Pharma, medical & biotech 18,087
to date. The second-largest deal in the Western US in Q1 fell in the Financial services 8,431
TMT sector, as Japan’s Hitachi acquired software engineering
company GlobalLogic in a US$9.6bn deal with the Canada
W-US top sectors by volume I Q1 2021
Pension Plan Investment Board and Partners Group. The deal
is the largest ever by the Japanese conglomerate and forms Deal count
part of the long-term strategy to slim down and reposition TMT 191
Hitachi as an IT and infrastructure specialist. Pharma, medical & biotech 77
Industrials & chemicals 70
Business services 56
Consumer 40
W-US top bidders by value I Q1 2021
US$(m)
USA 175,094
Japan 10,350
Switzerland 3,276
Canada 2,736
United Kingdom 1,072
W-US top bidders by volume I Q1 2021
Deal count
USA 428
Canada 21
United Kingdom 15
Sweden 6
Germany 5
14Red-hot 2021 Western US top 10 announced deals, Q1 2021
The third-largest deal in the region came again, as with the
Atieva transaction, in the I&C space. Teledyne Technologies
Announced Status* Bidder company Target company Sector Vendor company Deal
bought fellow sensory technology developer FLIR Systems in date value
a transaction valued at US$7.8bn. For Teledyne, which has a (US$m)
strong customer base in the aerospace, healthcare, marine and 1 22-Feb-21 P Churchill Capital Atieva, Inc. Industrials & 11,750
Corp IV chemicals
climate monitoring spaces, FLIR’s expertise in the consumer
sensor and thermal imaging verticals will add to its capabilities. 2 31-Mar-21 P Hitachi, Ltd. GlobalLogic, Inc. TMT Canada Pension Plan Investment Board; Partners Group 9,600
Holding AG
The outlook for Western US dealmaking remains positive moving 3 04-Jan-21 P Teledyne FLIR Systems, Industrials & 7,804
Technologies Inc. chemicals
forward, with Mergermarket’s heat map noting 1,251 ‘company Incorporated
for sale’ stories in the region. The TMT and I&C sectors are
4 04-Feb-21 P Stone Point - CoreLogic, Inc. Business 7,490
expected to remain critical and red-hot sources of deal flow, Insight Partners services
consortium
with 347 and 110 ‘for sale stories’ respectively. PMB (176) and
financial services (322) are also expected to be hot areas for 5 25-Mar-21 P II-VI Incorporated Coherent, Inc. TMT 6,816
M&A in the Western US.
6 07-Jan-21 P Social Capital Social Finance, TMT 6,570
Hedosophia Inc.
Holdings Corp. V
7 03-Mar-21 P Okta, Inc. Auth0, Inc. TMT Bessemer Venture Partners; Meritech Capital Partners; 6,500
Trinity Ventures LLP; Sapphire Ventures, LLC; K9
Ventures, LLC; Telstra Ventures Pty. Limited; Salesforce
Ventures ; World Innovation Lab; Deutsche Telekom
Capital Partners Management GmbH
8 05-Mar-21 P TSG Consumer Mavis Tire Supply Industrials & Golden Gate Capital 6,000
Partners, LLC; LLC chemicals
StepStone Group
Inc.; BayPine
9 04-Mar-21 P Reinvent Hippo Financial 5,522
Technology Enterprises Inc. services
Partners Z
10 24-Feb-21 P Reinvent Joby Aero, Inc. Industrials & 5,000
Technology chemicals
Partners
*C = Completed; P = Pending
Source: Mergermarket
15Midwestern US
Trains and tech investments
building foundation for optimism
M&A activity in the Midwestern US stabilized in Q1 2021 after a Riding the rails Midwestern US M&A activity,
volatile period of dealmaking through the pandemic period. The transportation industry was the largest in the Midwest by 2018-Q1 2021
value, coming in at US$31.8bn for the quarter, up almost 30-
The region recorded deal value of US$98.2bn from 281 deals in fold from the US$1.3bn recorded by the sector in the first three
Q1 2021, up from US$345bn of value from 284 transactions in months of 2020. 350 160
the same quarter last year. The steady showing followed a series
of up-and-down quarters. Q2 2020 saw only 146 deals worth The massive leap in aggregate deal value for transportation was 300
140
US$6.9bn, before a recovery in Q3 with 226 transactions valued almost entirely down to a single transaction—the Canadian
at US$65.9bn. In Q4, however, deal value tailed off again, with Pacific Railway’s US$28.6bn purchase of Kansas City Southern. 120
250
US$47.7bn of transactions from 298 deals.
The deal is the largest in Canadian Pacific’s history. In Kansas 100
Deal value US$(bn)
City Southern, it will take ownership of the smallest of the 200
Although Midwestern Q1 2021 deal value
Deal volume
seven US ‘Class 1’ railway operators that dominate the national 80
and volume trails the levels seen in Q1 2018 rail freight market. The deal will open up a line running from
150
(US$142.2bn from 303 deals) and Q1 2019 Canada to Mexico, exemplifying—after a difficult period in the 60
(US$114.9bn from 284 deals), the uptick from pandemic, and given the Biden administration’s intention to
revive trade with Mexico—how Canadian Pacific sees scope 100
Q4 2020 and recovery when compared for growth.
40
to H1 of last year offer grounds for optimism. 50
20
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021
Deal volume Deal value US$(bn)
Source: Mergermarket
17Tech in the spotlight MW-US top sectors by value I Q1 2021
The Kansas City Southern deal helped Canadian bidders
US$(m)
to rank as the second-largest group of inbound investors
Industrials & chemicals 9,706
in the Midwest, with US$30.6bn of deals. Domestic deals TMT 9,021
accounted for most of the investment in the region, with Real estate 6,239
the US as a whole representing US$58.7bn of deals in the Financial services 2,783
Midwest in Q1 2021. Business services 2,607
After transportation, the region’s next biggest sector by value
MW-US top sectors by volume I Q1 2021
was TMT, which saw deal value double from US$9bn in Q1
2020 to US$18bn in Q1 2021. The I&C sector accounted for Deal count
the third-largest share of deal value, with Q1 2021’s total for Industrials & chemicals 77
the industry coming in at US$17.5bn, up year-on-year from TMT 60
US$9.7bn. Business services 38
Pharma, medical & biotech 30
Financial services 23
In terms of deal volumes, I&C was the busiest sector, with 77
transactions, the same number as in Q1 2020. TMT was the
next most active industry with 60 deals, up from 44 in Q1 MW-US top bidders by value I Q1 2021
2020. Business services came in third with 38 transactions,
US$(m)
down from 50 in the first quarter of last year.
USA 58,668
Canada 30,580
Singapore 2,050
Germany 1,795
Ireland (Republic) 1,650
MW-US top bidders by volume I Q1 2021
Deal count
USA 248
Canada 7
United Kingdom 6
France 4
Germany 2
18Plugging into the cloud Midwestern US top 10 announced deals, Q1 2020
After the Canadian Pacific/Kansas City Southern deal, the
second-largest Midwestern deal was in the TMT space, as
Announced Status* Bidder company Target company Sector Vendor company Deal value
SPAC Dragoneer Growth Opportunities paid US$6.8bn for CCC date (US$m)
Information Services, an insurtech developer backed by PE firm
1 21-Mar-21 P Canadian Pacific Railway Ltd Kansas City Southern Transportation 28,643
Advent International.
2 03-Feb-21 P Dragoneer Growth CCC Information Services Inc. TMT 6,774
In the third-largest Midwestern deal, also in the TMT industry, Opportunities Corp.
Foley Trasimene Acquisition Corp, another SPAC investor, 3 25-Jan-21 P Foley Trasimene Acquisition Alight Solutions, LLC TMT 5,131
Corp.
acquired Alight Solutions in a deal valued at US$5.1bn. Foley
Trasimene, led by high-profile investor Bill Foley, agreed to 4 16-Feb-21 P Regal Beloit Corporation Rexnord Corporation (Process & Industrials & Rexnord Corporation 3,690
Motion Control segment) (61.4% chemicals
acquire the cloud-powered US benefits services provider Stake)
from PE backer Blackstone. Blackstone retained a stake in the
5 27-Jan-21 P Massachusetts Mutual Life Great American Life Insurance Financial American Financial 3,500
company post-deal, which saw Alight listed on the New York Insurance Company Company services Group, Inc.
Stock Exchange.
6 24-Mar-21 C BDT Capital Partners, LLC Acrisure, LLC Financial 3,454
services
The CCC Information Services and Alight SPAC deals were the 7
1 11-Feb-21 P Hormel Foods Corporation The Kraft Heinz Company (Nuts Consumer The Kraft Heinz 3,350
two TMT transactions to rank among the top 10 in the Midwest. Business) Company
I&C accounted for three of the 10 largest deals in the region, 8 26-Jan-21 P Blackstone Group L.P. Allstate Life Insurance Company Financial Allstate Corp 2,800
services
as did financial services, with consumer and transportation
accounting for one top-10 deal apiece. 9 18-Jan-21 C T. Rowe Price Associates, Rivian Automotive, LLC Industrials & 2,650
Inc.; Fidelity Management & chemicals
Research Company; Coatue
Management, L.L.C; D1 Capital
Partners L.P.; Amazon Climate
Pledge Fund
10 22-Feb-21 P The Goodyear Tire & Rubber Cooper Tire & Rubber Company Industrials & 2,470
Company chemicals
*C = Completed; P = Pending
Source: Mergermarket
19Southern US
Hard-hit sectors showing
clear signs of life
The Southern US saw deal value increase year-on-year from 495 Looking past COVID-19 Southern US M&A activity,
deals worth US$49.1bn in Q1 2020 to US$140.8bn from 479 TMT was the engine for the M&A recovery in the Southern US, 2018-Q1 2021
transactions in Q1 2021. recording deal value of US$56.7bn (up from just US$6.8bn in
Q1 2020) to rank as the largest sector by value over the first
Deal value for Q1 2021 was also up on the US$134.7bn of deals three months of the year. The next largest sector by value, PMB, 600 200
from 553 transactions posted in Q4 2020, as the Southern also saw a large year-on-year increase in Q1 deal value, with
M&A market showed sustained recovery from H1 2020, when US$17.8bn worth of deals in Q1 2021, up from US$4.3bn over
500
COVID-19 disruption saw Q2 deal activity tumble to US$11.7bn the same period last year.
on 271 deals, the lowest quarterly value and volume for the 150
region of the last three years.
Despite COVID-19 travel restrictions and 400
lockdowns, the leisure industry was the third
Deal value US$(bn)
The region attracted the bulk of its M&A investment in Q1 2021
Deal volume
from domestic bidders, who deployed US$117.2bn in deals in largest by value in the Southern US, with deal 300 100
the region. The Republic of Ireland was the next largest inbound value for Q1 2021 almost 15 times higher
bidder, with US$14bn of deals, followed by Switzerland in a
distant third with US$3.4bn.
year-on-year at US$15.6bn. 200
50
In terms of the largest sectors by volume, TMT again led the way
with 127 transactions, followed by business services with 79 100
and I&C with 71. TMT also accounted for more top-10 deals than
any other sector with five, followed by leisure with two. PMB,
0 0
EMU and consumer delivered one top-10 deal each. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021
Deal volume Deal value US$(bn)
Source: Mergermarket
21Health and technology synergies S-US top sectors by value I Q1 2021
The largest deal in the Southern US was a TMT transaction,
US$(m)
which saw OptumInsight merge with Blackstone-backed
TMT 56,685
Change Healthcare in a deal valued at more US$12bn. Pharma, medical & biotech 17,816
Change Healthcare provides data analytics technology to the Leisure 15,647
healthcare industry that is used to manage clinical, financial, Energy, mining & utilities 10,864
administrative, and patient care functions. OptumInsight Industrials & chemicals 9,180
is a diversified healthcare services company owned by
the UnitedHealth Group. It views the addition of Change
S-US top sectors by volume I Q1 2021
Healthcare as a way to streamline clinical and administrative
processes and lower patient costs. Deal count
TMT 127
The next largest deal in the region fell in the PMB sector. Business services 79
Irish-based clinical trials group ICON paid US$11.5bn for Industrials & chemicals 71
contract research organization PRA Health Sciences. This Pharma, medical & biotech 54
Financial services 48
deal contributed to the high placing for Ireland in the inbound
deal rankings. For ICON, the merger of the two groups will
build an entity with a wider geographic footprint, more S-US top bidders by value I Q1 2021
therapeutic expertise, and broader service offering.
US$(m)
USA 117,217
Ireland (Republic) 14,029
Switzerland 3,400
Canada 2,430
United Kingdom 1,360
S-US top bidders by volume I Q1 2021
Deal count
USA 418
Canada 13
United Kingdom 10
Ireland (Republic) 6
Spain 4
22Leisure time Southern US top 10 announced deals, Q1 2021
The leisure sector accounted for the third-largest Southern
US deal, as a consortium including Blackstone and Starwood
Announced Status* Bidder company Target company Sector Vendor company Deal value
Capital Group acquired a 90.6% stake in Extended Stay in a date (US$m)
US$8.9bn transaction.
1 06-Jan-21 P OptumInsight, Inc. Change Healthcare Inc. TMT Blackstone Group L.P. 12,550
The deal represents the third time that Blackstone has backed 2 24-Feb-21 P ICON plc PRA Health Sciences, Inc. Pharma, medical & 11,487
Extended Stay. It first took the hotel operator and franchisor biotech
private in 2004 before exiting in 2007, then backed the business 3 15-Mar-21 P Blackstone - Starwood Extended Stay Inc (90.6% Leisure 8,873
Capital Group Consortium Stake)
for a second time in 2010 when it joined a consortium that
rescued Extended Stay from bankruptcy. It listed the business 4 22-Mar-21 P Synnex Corporation Tech Data Corporation TMT Apollo Global Management, 7,241
LLC
in 2013.
5 27-Jan-21 P Peraton Corporation Perspecta Inc. TMT 6,969
Extended Stay’s portfolio of budget hotels has weathered the
pandemic disruption better than other hotel chains. Occupancy 6 17-Feb-21 P Energy Transfer LP Enable Midstream Energy, mining & 6,804
Partners LP utilities
rates have held up at around 74%, thanks to demand for interim
7 01-Feb-21 P FAST Acquisition Corp. Fertitta Entertainment Inc. Leisure Tilman Fertitta (Private 6,573
housing for essential workers. Investor)
8 22-Feb-21 P Northern Star Investment Apex Clearing Corporation TMT 4,700
Looking ahead, the outlook for M&A in the Southern US is Corp. II
positive. Mergermarket’s heat chart has tracked 1,222 ‘company 9 03-Mar-21 P Apollo Global The Michaels Companies, Consumer Bain Capital, LP. 4,420
for sale’ stories in the region, the third-highest figure recorded Management, LLC Inc.
across the Americas, including an abundance of potential 10 12-Feb-21 P Falcon Capital Acquisition Sharecare, Inc. TMT Galen Partners LLC; 3,900
Corp. New Evolution Ventures;
financial services opportunities. Heritage Group, LLC;
TomorrowVentures, LLC
*C = Completed; P = Pending
Source: Mergermarket
23Northeastern US
US dealmaking hub ready for
resurgent 2021
Deal activity in the Northeastern US sustained the momentum Gains across the board
built up through H2 2020 to post solid deal numbers in the first
Northeastern US M&A activity, The financial services, TMT, and PMB sectors dominated
three months of the new year.
2018-Q1 2021 activity through Q1 2021. Financial services was the
largest sector by value, with deals worth almost US$50bn
400 180 in aggregate, more than double the nearly US$24bn for
Although deal volumes edged lower year- second-place TMT. PMB was the third-largest sector by
on-year, from 384 deals in Q1 2020 to 345 350 160
value, with deals worth US$13bn. All three sectors saw
transactions, deal value rose markedly from 140
strong gains in value when compared to figures posted
US$72bn to US$126.5bn over the same 300 in Q1 2020.
period, putting it on a par with the strong 120
The outlook for the region is broadly positive, with the
250
quarterly figures recorded in 2019.
Deal value US$(bn)
Mergermarket heat chart recording 1,412 ‘company for sale’
Deal volume
100
200
stories in the Northeast, more than in any other region in the
The Northeastern deal market has shown a steady recovery 80 Americas. Financial services (463 stories), TMT (293) and
since Q2 2020, when deal volume fell to 210, the lowest PMB (222) are all expected to generate prolific deal activity
150
quarterly total of the last three years, and deal value dropped 60 over the coming months.
to US$26.5bn, also the weakest return for the region since
100
2018. In Q3 2020, however, deal value rebounded to US$68.3bn 40 With respect to deal volume in Q1, the TMT sector delivered
and surged again to US$154.1bn in Q4 last year as cities and 99 deals in the Northeast, followed by I&C with 48 deals and
50
deal markets in the region reopened and delayed transactions 20 business services with 44 transactions. Financial services
were rebooted. and TMT each accounted for three of the region’s top-10
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 deals in the quarter, with business services, EMU, consumer,
2018 2019 2020 2021 and PMB delivering one top-10 deal each.
Deal volume Deal value US$(bn)
Source: Mergermarket
25NE-US top sectors by value I Q1 2021 Ready for takeoff The AerCap deal on its own, the largest in the Americas
US$(m)
The largest deal in the region was in the financial services in Q1 2021, meant that Ireland ranked as the second-
sector as Irish-based AerCap, the world’s largest aircraft largest inbound bidder into the Northeast US in the
Financial services 49,867
leasing company, paid US$31bn for General Electric’s aircraft quarter, some distance ahead of the next largest
TMT 23,955
leasing division, GE Commercial Aviation Services. For GE, overseas bidders. Canada recorded US$2.7bn of
Pharma, medical & biotech 12,994
the divestment of its aircraft leasing arm was part of a wider inbound deals into the Northeast, followed by Sweden
Energy, mining & utilities 9,495 strategy to raise cash, pay down debt and scale back the (US$2.3bn) and Israel (US$2.1bn).
Industrials & chemicals 8,474 conglomerate to focus on its strongest business lines.
NE-US top sectors by volume I Q1 2021 For AerCap, the deal will bolster its fleet and put it in
a stronger position in negotiations with aerospace
Deal count
manufacturers. Although the aviation market has been
TMT 99
heavily impacted by COVID-19 travel restrictions, AerCap
Industrials & chemicals 48
sees the sector rebounding as vaccines are rolled out and air
Business services 44
Financial services 44 corridors reopen.
Pharma, medical & biotech 41
NE-US top bidders by value I Q1 2021
US$(m)
USA 83,105
Ireland (Republic) 31,000
Canada 2,774
Sweden 2,303
Israel 2,141
NE-US top bidders by volume I Q1 2021
Deal count
USA 283
United Kingdom 13
Canada 13
Ireland (Republic) 3
Sweden 3
26Northeastern US top 10 announced deals, Q1 2021
Announced Status* Bidder company Target company Sector Vendor company Deal value
Sizing up the competition
date (US$m) The second-largest deal in the region fell in the financial
services space, with M&T Corporation acquiring People’s
1 10-Mar-21 P AerCap Holdings N.V. GE Capital Aviation Financial General Electric Company 31,000
Services LLC services United Financial in a US$7.5bn transaction. The deal is one
2 22-Feb-21 P M&T Bank Corporation People's United Financial, Financial 7,530 of a series involving regional banks, which have looked to
Inc. services consolidate and build scale in order to compete with the
3 26-Mar-21 P BowX Acquisition Corp. WeWork Companies LLC Business 6,553 large US banks JPMorgan Chase, Bank of America, and
services
Citibank. The M&T deal for People’s United Financial will
4 18-Mar-21 P PPL Corporation The Narragansett Electric Energy, mining & National Grid Plc 5,166 form a new bank with assets of US$200bn and a customer
Company utilities
base stretching across the Northeast.
5 16-Feb-21 P Metropoulos & Co; One Nestle Waters North Consumer Nestle S.A. 4,300
Rock Capital Partners, LLC America Inc.
The sale of flexible office space provider WeWork to BowX,
6 12-Jan-21 P STERIS plc Cantel Medical Corp. Pharma, medical 4,185
a SPAC headed by Vivek Ranadivé, the founder of software
& biotech
company Tibco, was the third-largest deal in the Northeast
7 03-Mar-21 P TA Associates Precisely Incorporated TMT Centerbridge Partners, L.P. 3,500
Management, LP.; in Q1. The deal provides an exit for WeWork investor
Clearlake Capital Group, SoftBank, which had made an initial attempt to list WeWork
L.P.
in 2019 that was called off, with investors concerned
8 03-Feb-21 P FTAC Olympus Acquisition Payoneer, Inc. TMT Temasek Holdings Pte. Ltd.; 3,118
about the company’s losses. After the deal with BowX,
Corp. Technology Crossover Ventures;
Viola Group; Susquehanna Growth WeWork will reverse into the SPAC and begin trading as
Equity, LLP; CBC Capital; Crossbar
a public company.
Capital Advisors ; Vintage Ventures
Management Ltd; Nyca Partners
9 25-Mar-21 P Slate Asset Management Annaly Commercial Real Financial Annaly Capital Management, Inc. 2,330
L.P. Estate Group services
10 12-Feb-21 P Fusion Acquisition Corp. MoneyLion, Inc. TMT 2,200
*C = Completed; P = Pending
Source: Mergermarket
27Brazil
Signs of broad rebound
undercut by virus relapse
Deal activity in Brazil bounced back strongly in Q1 2021, Dialing back expectations Brazil activity, 2018-Q1 2021
with deal value rising more than four-fold from the same The rebound in Brazil’s deal markets, however, could be
period in 2020. impacted by another wave of COVID-19, which has put immense
pressure on its health service. Brazil has been hit hard by a
Over the first three months of this year, Brazil recorded 112 deal resurgence of infections, with daily COVID-19 deaths surpassing 140 30
announcements valued at US$21.7bn, up from 87 deals worth the 4,000 threshold and hospital occupancy in the main urban
under US$5bn posted in Q1 2020. Momentum from Q4 2020, centers of São Paulo and Rio de Janiero reaching 90%. 120
25
which saw US$25.1bn worth of deals, carried into the start of
2021, which logged Brazil’s highest Q1 deal value total of the BOVESPA, Brazil’s main stock market index, is showing gains of
100
last three years. just over 1% this year as of mid-April, versus double-digit rises
20
on US and Canadian stock exchanges.
Deal value US$(bn)
Most of the activity was generated by domestic players. 80
Deal volume
Brazilian bidders delivered US$14.8bn of the country’s deal
value. The next largest inbound investor, the US, trailed in a
Hopes of a big rebound in Brazil’s economy, 15
distant second place with US$3.7bn, followed by the United which showed growth of 3.2% in Q4 2020, 60
Arab Emirates at US$1.7bn. according to Deloitte, have also been 10
dialed back as the rise in COVID-19 cases
40
has undermined consumer and business 5
20
confidence. Only a very modest expansion
is now anticipated in Q1 2021.
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021
Deal volume Deal value US$(bn)
Source: Mergermarket
29Steps towards recovery Brazil top sectors by value I Q1 2021
In terms of the most active industries in deal value and
US$(m)
volume terms in Brazil in Q1, the financial services sector was
Financial services 10,496
the largest industry by value, with US$10.5bn of deals. This Energy, mining & utilities 5,580
was almost double the US$5.6bn figure recorded for the EMU Consumer 2,092
industry, the next largest sector by value. The third-largest TMT 1,357
sector by value was consumer, with deals worth in excess of Pharma, medical & biotech 992
US$2bn in aggregate announced. All three sectors showed
significant gains on their equivalent Q1 deal value figures
Brazil top sectors by volume I Q1 2021
from a year ago.
Deal count
In the volume rankings, TMT led the way with 24 deals TMT 24
announced in Q1, followed by PMB with 21 transactions Pharma, medical & biotech 21
and business services with 15. Volumes for all three sectors Business services 15
climbed year-on-year in Q1. Energy, mining & utilities 14
Consumer 10
The 10 largest deals in Brazil came from a mix of sectors,
with two deals each from financial services, EMU, TMT, and Brazil top bidders by value I Q1 2021
consumer. PMB and I&C accounted for one top-10 deal each.
US$(m)
Such diversity indicates that dealmakers in the country are
Brazil 14,749
perhaps taking the first hopeful steps towards a broad-
USA 3,675
based, sustainable recovery. United Arab Emirates 1,650
Canada 536
Israel 401
Brazil top bidders by volume I Q1 2021
Deal count
Brazil 82
USA 10
Ireland (Republic) 2
United Arab Emirates 2
Canada 2
France 2
30Future of energy Brazil top 10 announced deals, Q1 2021
The biggest deal in Brazil in Q1 2021 came in the financial
services sector, as Hapvida, the São Paulo-based insurer and
Announced Status* Bidder company Target company Sector Vendor company Deal value
hospital operator, acquired rival group Notre Dame Intermedica, date (US$m)
in which US buyout firm Bain Capital holds a minority stake, in a
1 01-Mar-21 P Hapvida Participacoes e Notre Dame Intermedica Financial Bain Capital, LP. 10,063
deal worth US$10bn. The combined entity will have 70 hospitals Investimentos SA Participacoes S.A. services
under its management, putting it ahead of Rede D’Or, Brazil’s 2 13-Jan-21 P New Fortress Energy LLC Hygo Energy Transition Energy, mining Golar LNG Limited; Stonepeak 3,100
next biggest hospital group, which is backed by PE firm Carlyle. Ltd. & utilities Infrastructure Partners
3 24-Mar-21 P Mubadala Capital Landulpho Alves Energy, mining Petroleo Brasileiro SA 1,650
Refinery & utilities
EMU accounted for the next two largest deals in Brazil. New
Fortress Energy acquired liquid natural gas shopping company 4 24-Mar-21 P Atacadao S.A Grupo BIG Brasil SA Consumer Walmart Inc.; Advent 1,266
International Corporation
Hygo Energy Transition, a joint venture between Stonepeak
Infrastructure and Golar, in a US$3.1bn deal. For New Fortress 5 08-Feb-21 P Raizen Energia S.A. Biosev S.A. Consumer Louis Dreyfus Company B.V. 670
Energy, the deal expands its presence in Latin America and gives
it access to Brazil’s sizeable energy market. 6 23-Mar-21 C Advent International Corporation; Loft Brasil Tecnologia TMT 425
Silver Lake Partners; GIC Private Ltda.
Limited; Soros Fund Management
LLC; Canada Pension Plan Investment
In the third-largest deal in the country, Mudbadala Capital, the Board; Vulcan, Inc.; and others
financial investment arm of Abu Dhabi’s sovereign wealth fund,
carved out the Landulpho Alves Refinery from state-controlled 7 14-Mar-21 P Diagnosticos da America SA Hospital São Domingos Pharma, 417
Ltda; Neuro Imagens medical &
oil company Petrobras in a transaction valued at US$1.7bn. The Ltda; Clinica Solucao biotech
Medica Ltda.
deal is part of a wider divestment program by Petrobras to cut
debt and reduce exposure to fuel pricing volatility. 8 24-Mar-21 P Israel Chemicals Limited Compass Minerals Industrials & Compass Minerals Group, Inc 401
America do Sul Industria chemicals
e Comercio S.A.
9 28-Jan-21 C GIC Private Limited; Sequoia Capital; Nubank Financial 400
Tencent Holdings Ltd.; Invesco services
Ltd.; Ribbit Capital, L.P.; Dragoneer
Investment Group, LLC; Whale Rock
Capital Management LLC
10 09-Mar-21 P Totvs S.A. RD Gestao e Sistemas TMT TPG Capital LP; DGF 325
S.A. (92% Stake) Investimentos; Riverwood
Capital, LLC; Redpoint
e.ventures; Astella
Investimentos; Endeavor
Catalyst
*C = Completed; P = Pending
Source: Mergermarket
31Latin America & the Caribbean (excl. Brazil)
International dealmakers look past
pandemic mismanagement
The Latin American & Caribbean deal market continued Still in the thick of it
to build on momentum from Q4 2020 to post a strong
Latin America & the Caribbean Although deal value moved markedly higher, deal volumes in
performance through the first three months of the new year.
(excl. Brazil) M&A activity, 2018-Q1 2021 the region slid in Q1 2021 to 48 deals, versus 73 deals in Q4
2020 and 78 during the same period last year. Q1 2021 deal
Deal value for the region for Q1 2021 more than tripled to 120 35 volume figures are the second lowest for a quarter going
US$18bn from US$5.3bn in Q1 2020. This was still below the back to 2018, with only the pandemic-hit Q2 2020 deal
levels of deal value seen in the prolific Q1 2018 (US$31.8bn) 30 numbers (34) coming in lower.
100
but marked a significant improvement on figures from Q2 and
Q3 2020, when aggregate deal value reached only US$537m Looking ahead to the rest of this year, the Latin America &
25
and US$5.7bn respectively. Caribbean market still faces an uncertain period, despite
80
the rebound in deal activity levels seen over the first three
Deal value US$(bn)
The market did recover in the final quarter of 2020, when deal 20 months of 2021. Colombia, Argentina and Mexico are
Deal volume
value totaled US$13.7bn, as a backlog of deals put on hold in 60
all facing a new wave of COVID-19 infections, with fresh
the early phases of the pandemic came back into play. lockdowns coming into force in Argentina and Colombia.
15
According to figures from Statista, Latin
40
10
America has now recorded more than 25m
20
5 COVID-19 diagnoses, while the World Bank
says Latin America has been the region
0 0 hardest hit economically by the pandemic.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2018 2019 2020 2021
Deal volume Deal value US$(bn)
Source: Mergermarket
33LatAm top sectors by value I Q1 2021 Outsized overseas attention In terms of particular industries, financial services
Despite rising COVID-19 cases and an uncertain outlook was the largest sector by deal value in the region,
US$(m)
for M&A, the largest inbound investors into Latin America with transactions to the value of just under US$12bn
Financial services 11,967
Energy, mining & utilities 3,807 & the Caribbean were from abroad. in Q1 2021, up from US$2.7bn during the same period
Transportation 1,287 last year.
TMT 620 The US was the biggest investor in the region in Q1 2021,
Leisure 248 with bidders from there responsible for US$12.8bn worth EMU was the next biggest industry for deal value,
of deals in Q1 2021. Italy was the second-largest inbound recording US$3.8bn worth of deals, up year-on-year
bidder, investing US$1.47bn. Third-place Chile was the only from just US$1.3bn. EMU was also the largest sector
LatAm top sectors by volume I Q1 2021
Latin American country to rank in the top-five for inbound by deal volume, with 18 deals.
Deal count bidders, with deals to the value of US$1.44bn.
Energy, mining & utilities 18
Consumer 6
TMT 5
Transportation 5
Financial services 4
LatAm top bidders by value I Q1 2021
US$(m)
USA 12,808
Italy 1,472
Chile 1,440
Spain 677
China 643
LatAm top bidders by volume I Q1 2021
Deal count
USA 7
Chile 7
Mexico 5
Canada 4
Colombia 4
34Latin America & the Caribbean (excl. Brazil) top 10 announced deals, Q1 2021
Announced Status* Bidder company Target company Sector Vendor company Deal value
Eyes on renewable energy
date (US$m) The strong performance of the financial services
sector in the region was driven by PE firm Apollo Global
1 08-Mar-21 P Apollo Global Management, LLC Athene Holding Ltd Financial 10,921
services Management’s US$11bn deal with life insurance company
2 15-Mar-21 P Enel S.p.A. Enel Americas SA (10% Energy, mining & 1,472 Athene Holding. Apollo created Bermuda-based Athene
Stake) utilities in 2009 to deploy client capital through the purchase of
3 30-Mar-21 P Alfa Desarrollo SpA Colbun Transmission SA Energy, mining & Colbun SA 1,295 corporate debts and undervalued assets. The combination
utilities
of the two groups more than 10 years later will see the
4 13-Jan-21 P New Fortress Energy LLC Golar LNG Partners LP Transportation 1,287 formation of a financial conglomerate valued at close to
US$30bn.
5 26-Mar-21 P Banco Santander, S.A. Banco Santander Mexico, Financial 647
S.A. (8.36% Stake) services
EMU accounted for the next two largest deals in the region.
6 22-Feb-21 P Kohlberg Kravis Roberts & Co. L.P. InfraCo SpA (60% Stake) TMT Telefonica Chile SA 600
Italian utility company Enel paid US$1.5bn to acquire a
10% stake in its Chilean subsidiary Enel Americas. The deal
7 21-Jan-21 C China Yangtze Power Co., Ltd. Luz del Sur S A A (13.49% Energy, mining & 561
Stake) utilities will see Enel Americas incorporate the South and Central
American renewable assets of Enel’s renewable energy
8 08-Jan-21 P Trustbridge Partners VII, L.P; Asia Hive Box Holdings Limited Financial 400
Forge (Cayman) Ltd.; SCC Growth (11.57% Stake) services business Enel Green Power. The inclusion of the green
VI 2020 F, L.P; Redview Capital
Investment VII Limited; All-Stars energy portfolio ups Enel Americas’ installed capacity from
PEIISP VI Limited; All-Stars PESP X 5 GW to 16.3 GW.
Limited
9 27-Jan-21 P Huge Harvest International Limited Spearhead Global Limited Leisure New Century Real 248 Chilean energy company Alfa Desarrollo, meanwhile,
Estate Investment
Trust paid US$1.3bn for the transmission division of power
company Colbun. Colbun wanted to realize the value of its
10 12-Feb-21 P Invercap SA CAP SA (6.77% Stake) Energy, mining & Mitsubishi Corporation 108
transmission assets and strengthen its position in areas like
utilities
*C= Completed; P= Pending renewable energy.
Source: Mergermarket
35About this report
Produced in partnership with Mergermarket, an Acuris company
Editors (Acuris Studios): Julian Frazer, Yining Su
For a full version of the Mergermarket M&A deal database inclusion and
league table criteria, go to: www.mergermarket.com/pdf/deal_criteria.pdf
#Wheredealsaremade
Get in touch, visit www.datasite.com or contact: info@datasite.com AMERS +1 888 311 4100 | EMEA +44 20 3031 6300 | APAC +852 3905 4800
©Datasite. All rights reserved. All trademarks are property of their respective owners. DS-1.XXX.XXYou can also read
