M&A Highlights

Excerpts from recent issue of Venture Equity Latin America
Published by WorldTrade Executive, Inc.

Brazil M&A Activity Falls 11 Percent in 2008
PricewaterhouseCoopers
In 2008, Brazil registered 639 mergers and acquisitions, down 11 percent from 2007, analyst PricewaterhouseCoopers said in its latest report on the sector. But it said that M&A was still 12 percent above the level in 2006, which indicated a certain maturing in the sector.

Mexico: M&A Roundup 2008
By Merger Market
With nearly 90 deals in 2007 for a value of $27.2bn, the market slowed down in 2008, with only 56 announced deals and a total value of approximately $7.3bn. These figures represented a drop of 37% in deal activity and a 73% decline by overall deal values.

LBO No Longer an Option in Brazil
By Elizabeth Johnson
With the international credit crisis, the brief window during which private equity funds had the option to do leverage buyouts has closed.
With credit market tight, maturities down and borrowing costs on the rise, private equity funds expect acquisition structures to change.
However, there is a consensus that it is a positive moment for funds, especially those that raised capital in 2008.

Hotel Fund of Brazil’s GP Investimentos Buys Invest Tur
LA Hotels LLC, the hotel arm of Latin America’s leading private equity fund GP Investmentos, bought control of troubled Brazilian tourism company Invest Tur, which raised R$945 million on the local São Paulo Stock Exchange in July 2007. The company still has 490 million in cash, of which R$300 million would be returned to investors if LA Hotels closes the deal.

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