Mergers and Acquisitions to Sweep LatAm

With GDP growth down throughout Latin America — along with low commodity prices, high interest rates, and dwindling corporate cash flow — Bloomberg is predicting a series of restructuring deals across the region. For many firms the rationale is simple: Sales are needed to meet debt payments. “Assets that we never thought would be coming to the market are now for sale as some companies and sectors are distressed,” Marcus Silberman of Merrill Lynch told Bloomberg. M&As in the region are already up 14% this year, and Bloomberg lists Citigroup, Duke Energy, and mining giant Anglo American as among those poised for selloffs. Still, this isn’t necessarily bad news. Many believe now is great time to invest in long-term opportunity. “The volatility, both economic and political, in the region isn’t stopping a general sense of optimism for the future of business in Latin America,” writes the Latin Post.