Latin American M&A rallies

Asset sales in the region are again starting to lure buyers after a tough financial year

Latin American deal-making staged a recovery in Q3 after months of capex cuts and little incentive to spend. And there could be more deals to come before the end of the year and into 2021. Brazil recorded a number of major deals in Q3 and also leads the region for M&A opportunities. Transactions valued at c.$346mn were agreed over the quarter, the most notable being Brazilian state-controlled oil company Petrobras' $155mn divestment of its Cricare onshore fields to specific purpose entity Karavan. Petrobras was, in fact, the seller in five of the six major Brazilian deals in Q3. Divestment remains a key component of the NOC’s strategy to pivot towards the pre-salt, the most profitable pa