Mergers and acquisitions will fall by 14.4% in Latin America in 2020

The consultants Baker McKenzie and Oxford Economics, revealed on Monday that the volume of mergers and acquisitions in Latin America will fall by 14.4%, a percentage that has been reflected due to global economic uncertainty. According to the fifth Global Transaction Forecast, “transactional activity will continue in global crisis in 2020 as a result of the current global economic uncertainty and the risk of economic recession.”

Maintaining the standard in the external development of a nation or continent will depend on many factors, among them the permanence of cooperation or alliance strategies between different bodies where the structural changes in the entity will be decisive for the rise or fall in the economy of a country.

For 2019, in Latin America there were 27,312 million dollars in domestic transactions and 62,680 million dollars in cross-border transactions, while by 2020, the report forecasts 25,230 million dollars in domestic transactions and 52,095 million dollars in cross-border transactions.

Deceleration of the economy

For the leader of the Global Transactional Group of Baker McKenzie, Ai Ai Wong, “transactions are happening, but the current slowdown is inevitable considering the continuing uncertainty around international trade and regulatory controls”, as reported in a company statement .

This forecast extends in large part to the countries that make up the Latin American continent. For example, “Argentina will experience the biggest decline in domestic mergers and acquisitions in 2020″. Likewise, it is argued that “in Chile, Peru and Mexico they have the most favorable conditions for carrying out transactions in the region, although a decrease in the activity of mergers and acquisitions in the three markets is expected next year”.

K.Villarroel

Source: bancaynegocios