Transaction market in Mexico increases 11%

The M&A market saw a total of 19 transactions during the month of July, according to the Transactional Track Record (TTR) report

 Throughout the year, and up to July 2021, there have been a total of 190 transactions, of which 102 have a combined amount of 12,211 million dollars, and where the 19 operations last month represented 926.24 million, which implies an increase of 11.11% in the number of transactions and an increase of 199% in the amount of these, compared to the same period in 2020.

The technology sector stood out as the most active sector of the year, with 55 transactions, up 77% compared to July 2020. It was followed by the Financial and Insurance sector, with a total of 52 transactions and 79% growth compared to the same period in 2020.

With regard to the cross-border market, throughout 2021 Mexican companies have mainly invested in the United States, Chile and Spain, with 13, 11 and 9 operations respectively. By amount, the United States stands out, with 2,058.50 million dollars.

In terms of the countries that have opted to make acquisitions in Mexico, the United States is the main player with 61 operations and an amount of 1,977.46 million, followed by the United Kingdom with 12 transactions.
For their part, US companies acquiring Mexican companies have increased by 41.86% up to July, compared to the same period in 2020, while foreign acquisitions in the technology and internet sectors have registered an increase of 76% compared to July 2020.

Foreign Private Equity and Venture Capital funds that have invested in Mexican companies have registered a year-on-year increase of 16.67% until July 2021.

As proof of this, a total of 10 Private Equity operations for $696 million have been recorded up to July 2021, representing a decrease of 9.09% in the number of operations and an increase of 192.95% in the amount of these operations, compared to the same period of the previous year.

In the Venture Capital segment, a total of 85 transactions were recorded up to July with an aggregate amount of $2,220 million, an increase of 54.55% in the number of transactions and an increase of 446.46% in the number of transactions in year-on-year terms.

Up to July, there were 30 Asset Acquisitions for an aggregate amount of 5,669 million, representing a decrease of 16.67% in the number of transactions and an increase of 542.47% in the number of transactions compared to July 2020.

Transaction Highlights

For July 2021, Transactional Track Record has selected the acquisition of Cartonbox by Smurfit Kappa as a featured transaction.

The transaction, with confidential value, has been advised on the legal side by Galicia Abogados, Baker Botts, and Álvarez & Asociados Abogados.

Legal Advisors Ranking

In the TTR ranking of legal advisors, by number of transactions, Creel, García-Cuéllar, Aiza y Enríquez leads in the course of 2021, with 14 transactions. And by capital mobilised, Mijares, Angoitia, Cortés y Fuentes leads with 5,881.10 million dollars.