Top 20 business functions and acquisitions in Latin America

ECLAC has recently released its rankings for the top functions and acquisitions in Latin America and the Caribbean for the year 2023. Among the prominent acquiring companies listed are Energias de Portugal S.A. (EDP), L’Oréal S.A., Inchcape PLC, Talanx AG, Darling Ingredients Inc., Calleja Group, and ACG Acquisition Company Limited.

In the year 2023, a total of 370 mergers and acquisitions (M&A) transactions took place in Latin America and the Caribbean, amounting to US$25,959 million. Companies often utilize mergers and acquisitions as strategic tools to expand, diversify, or enhance their market positions. Through these transactions, businesses aim to fortify their presence and capitalize on new opportunities. Mergers involve the combining of two or more companies to create a single entity, while acquisitions entail one company purchasing another.

Despite the region witnessing a return to pre-pandemic levels of deal-making and showing an upward trend, the total transaction value has not yet matched previous highs. In comparison to 2022, there was a 15.3 percent increase in the number of deals in 2023, but the total value decreased by 13.2 percent.

Leading the way in terms of M&A activity was Brazil, attracting 63 percent of the total transaction value and accounting for 44 percent of the deals in the region. Significant growth was seen in Brazil, with the total transaction value rising by 73 percent and the number of operations increasing by 26 percent. The country also hosted six of the ten largest deals of the year, establishing itself as a pivotal market for multinational companies in the region.

Chile secured the second position in terms of transaction value, capturing 18 percent of the total, followed by Colombia with 9 percent. Mexico, which was a key M&A destination in 2022, was overtaken by Chile and Colombia in 2023, now representing 8% of the total. This shift is attributed to stable transaction values in Chile (with a 1% growth) and a 38 percent increase in Colombia, while Mexico experienced a 75 percent decline primarily due to major deals in 2022 such as the Televisa-Univision merger and Aeromexico restructuring.

Despite the decline in transaction value, Mexico remained the second-largest recipient of M&A deals, claiming 15 percent of the total. Chile ranked third with 10 percent, while Colombia and Argentina shared the fourth spot, each accounting for 8 percent of the deals.