LatAm M&A Shifts to Bigger AI-Driven Deals

Latin America’s mergers and acquisitions (M&A) market saw fewer but significantly larger transactions in the first half of 2026, as companies focused on strategic consolidation, artificial intelligence (AI), and nearshoring opportunities.

The region recorded 1,062 announced and completed deals, down 30% from a year earlier, according to Mexico Business News citing TTR Data. However, the total value of transactions slipped only 6% to US$49.11 billion, reflecting a sharp increase in average deal size as investors favored established businesses and critical infrastructure over smaller, speculative acquisitions.

Brazil remained the region’s largest M&A market, accounting for more than half of all transactions. Although deal volume declined 35% to 593, total deal value rose 15% to US$32.56 billion. Mexico also posted strong growth, with capital deployed increasing 21% to US$10.91 billion despite a 19% drop in deal count.

The shift was driven largely by nearshoring-related investments and AI adoption, the paper added. One of the region’s largest transactions was Spanish infrastructure company Cox’s US$4.17 billion acquisition of Iberdrola México, underscoring growing foreign investment in energy assets supporting manufacturing relocation.

AI is also reshaping acquisition strategies, with companies increasingly buying established technology capabilities rather than developing them internally. Considering the report, corporate buyers are treating AI as core operational infrastructure, accelerating investments in firms with expertise in areas such as risk management, compliance, and data analytics.

Private capital followed a similar pattern. Private equity deal volume fell 14% to 71 transactions, but disclosed deal value more than doubled to US$10.01 billion. Venture capital activity also shifted toward larger, later-stage investments, with funding rising 13% to US$2.32 billion even as the number of deals dropped 38% to 174.

Technology remained the region’s most active sector for exits, recording 181 transactions during the first six months of the year, highlighting continued investor appetite for mature digital businesses despite a slowdown in overall deal activity.