Global M&A Trends Report |
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Peru |
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(Latin America/Caribbean)
Firm
Estudio Olaechea
Contributors
Joanna Dawson |
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| With respect to private M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | Three things top of mind for private M&A practitioners in Peru are:
After the COVID-19 pandemic (2020-2021) M&A transactions in Peru take into account and/or are affected by the following (i) the implementation of antitrust regulations for the first time in our country since June 2021 (before regulations were only applicable to the electric sector), the latter implies requiring pre-approval for certain M&A transactions; (ii) the side effects and loss of trust from foreign investors due to the political noise suffered by our country between 2021-2022 as consequence of several presidential and governmental authorities changes, and (iii) the economic crisis that goes accompanied by inflation and higher costs for financing operations. Nevertheless, in 2023 our jurisdiction was resilient and the M&A market closed in 2023 with positive results and the largest number of transactions since 2019. |
| With respect to private M&A, where does your jurisdiction see most deal activity? | Most private M&A deal activity is categorized as mid-market. |
| With respect to private M&A, what sector sees the most deal activity in your jurisdiction? | Most private M&A deal activity is seen in the Energy sector. |
| What are your predictions for private M&A deal volume in your jurisdiction during 2024? | Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. As of today, we are watching an interesting M&A market with several new opportunities for local and foreign investors, for example, financial and operating restructurings are generating divestment transactions and the sale of minority packages in several companies. Likewise, Peru has gained certain economic stability due to the accurate politics applied by the Central Bank (Banco Central de Reserva), in comparison to other countries of our region. We expect to see several transactions in the energy and health sectors during 2024, owners are willing to hear offers and start negotiations for the sale of their businesses. |
| With respect to public M&A, what are three things on top of mind for M&A practitioners in your jurisdiction? | Three things top of mind for public M&A practitioners in Peru are:
After the COVID-19 Pandemic (2020-2021) M&A Transactions in Peru take into account and/or are affected by the following (i) the implementation of antitrust regulations for the first time in our country since June 2021 (before regulations were only applicable to the electric sector), the latter implies requiring pre-approval for certain M&A transactions; (ii) the side effects and loss of trust from foreign investors due to the political noise suffered by our country between 2021-2022 as consequence of several presidential and governmental authorities changes, and (iii) the economic crisis that goes accompanied by inflation and higher costs for financing operations. Nevertheless, in 2023 our jurisdiction was resilient and the M&A market closed in 2023 with positive results and the largest number of transactions since 2019. |
| With respect to public M&A, where does your jurisdiction see most deal activity? | Most public M&A deal activity is categorized as mid-market. |
| With respect to public M&A, what sector sees the most deal activity in your jurisdiction? | Most public M&A deal activity is seen in the Energy sector. |
| What are your predictions for public M&A deal volume in your jurisdiction during 2024? | Public M&A deal volume in 2024 is predicted to be greater than 2023 deal activity, in 2024, we expect more deals in the mentioned sectors as well as deals related to new sectors (like venture capital) formerly affected by the economic and political crisis explained above. Therefore, it is said it is possible to reach a record number of transactions in 2024, surpassing even the one obtained pre-pandemic. |
| Please share any other insights with respect to M&A in your jurisdiction: | We look forward to the ongoing increase of the M&A Market in 2024. We have been seeing more private deals, and the involvement of more local and foreign players, showing their confidence in the economic/political situation of our country. We expect that the political and economic crisis suffered globally does not become an obstacle to the forecasted increase of the M&A deals for Peru in 2024, and that our country can continue its resilient position during this upcoming year. |
Global M&A Trends Report
Three things top of mind for private M&A practitioners in Peru are:
- General: economic environment
- General: political environment
- Regulatory: antitrust
After the COVID-19 pandemic (2020-2021) M&A transactions in Peru take into account and/or are affected by the following (i) the implementation of antitrust regulations for the first time in our country since June 2021 (before regulations were only applicable to the electric sector), the latter implies requiring pre-approval for certain M&A transactions; (ii) the side effects and loss of trust from foreign investors due to the political noise suffered by our country between 2021-2022 as consequence of several presidential and governmental authorities changes, and (iii) the economic crisis that goes accompanied by inflation and higher costs for financing operations. Nevertheless, in 2023 our jurisdiction was resilient and the M&A market closed in 2023 with positive results and the largest number of transactions since 2019.
Most private M&A deal activity is categorized as mid-market.
Most private M&A deal activity is seen in the Energy sector.
Private M&A deal volume in 2024 is predicted to be greater than 2023 deal activity. As of today, we are watching an interesting M&A market with several new opportunities for local and foreign investors, for example, financial and operating restructurings are generating divestment transactions and the sale of minority packages in several companies. Likewise, Peru has gained certain economic stability due to the accurate politics applied by the Central Bank (Banco Central de Reserva), in comparison to other countries of our region. We expect to see several transactions in the energy and health sectors during 2024, owners are willing to hear offers and start negotiations for the sale of their businesses.
Three things top of mind for public M&A practitioners in Peru are:
- General: economic environment
- General: political environment
- Regulatory: antitrust
After the COVID-19 Pandemic (2020-2021) M&A Transactions in Peru take into account and/or are affected by the following (i) the implementation of antitrust regulations for the first time in our country since June 2021 (before regulations were only applicable to the electric sector), the latter implies requiring pre-approval for certain M&A transactions; (ii) the side effects and loss of trust from foreign investors due to the political noise suffered by our country between 2021-2022 as consequence of several presidential and governmental authorities changes, and (iii) the economic crisis that goes accompanied by inflation and higher costs for financing operations. Nevertheless, in 2023 our jurisdiction was resilient and the M&A market closed in 2023 with positive results and the largest number of transactions since 2019.
Most public M&A deal activity is categorized as mid-market.
Most public M&A deal activity is seen in the Energy sector.
Public M&A deal volume in 2024 is predicted to be greater than 2023 deal activity, in 2024, we expect more deals in the mentioned sectors as well as deals related to new sectors (like venture capital) formerly affected by the economic and political crisis explained above. Therefore, it is said it is possible to reach a record number of transactions in 2024, surpassing even the one obtained pre-pandemic.
We look forward to the ongoing increase of the M&A Market in 2024. We have been seeing more private deals, and the involvement of more local and foreign players, showing their confidence in the economic/political situation of our country. We expect that the political and economic crisis suffered globally does not become an obstacle to the forecasted increase of the M&A deals for Peru in 2024, and that our country can continue its resilient position during this upcoming year.