Merges and Acquisitions in 2009: Peruvian Companies went shopping


More Cautious
But this does not mean that the market for mergers and acquisitions, also known as M & A, was oblivious to the effects of global financial crisis. According to Liliana Espinosa, a member of the Echecopar Study, during the first half of 2009 (and contrary to what happened in 2008), there were virtually no transactions as investors were extremely cautious.

“Operations recently began to be reactivated (and strengthened) during the second semester, and in those cases where operations actually materialized, there was a major change," said Espinosa. "Buyers who until last year had the slogan to grow and buy, no matter what or how much, began to be more demanding and meticulous in the preparation of contracts and due diligence to protect themselves against any change in price or adverse circumstances.”

This version was confirmed by Cesar Arbe, a partner in Forsyth & Arbe. “Many projects of acquisition and merger stopped and from the second quarter on, interest was revived with greater caution, but the overall balance will be equally positive,” he said.

More Sectors
Another important feature that was not lost was the consolidation of a trend that appeared last year: the diversification of investments. “For many years, mining and fishing were the main players in the M&As," Ferreo pointed out. "However, that changed. This year, purchases and mergers occurred in virtually all sectors of the economy, especially in those related to agribusiness, and consumer services."

In fact, there were representative purchases such as the purchase of 40% of shares of Mitsui Machinery by Komatsu (world leader in the manufacture of heavy machinery) and the sale of Edyficar to the BCP for over U.S. $90 million as well as the purchase of San Jacinto by the Gloria group (via a stock swap by Farpasa) and the sale of shares owned by the Falcon group in Plastic Industries Corporation. All these are examples of such diversification.

Without a doubt, these operations are a clear sign that the recovery has been going steadily and that 2010 looks like a promising year.

2009 M&As

all transactions in US dollars

$40 million: Komatsu Ltd. acquires shares from Mitsui Maquinarias del Peru S.A.

Giuliana S.A. Fishery (Romero Group) acquires interests in social capital of Ahmara S.A. Corporation.

$4.3 million: Tecnologia de Alimentos S.A. buys fishing boat from North Atlantic Fishing Limited (England).

Renting Peru S.A. acquires Localiza Perú Rent a Car.

Ibarcena Group buys social capital of Holding Inversiones Alsacia S.A. (Transantiago-Chile)

$25 million: Exalmar S.A. Fishery and Austral Group S.A. acquire economic block of Cormar.

Montana (produces inputs for food industry) buys the vitamin business unit of BASF in Chile.

$51 million:
Group of investors acquires shares of the Minera Poderosa S.A.

$20 million: Snacks América Latina Frito Lay (Pepsico Inc.) acquires Karinto S.A.C.

$51.7 million:
Fondo Compass acquires 50%  of the Minera Poderosa Company.

$40 million: Wong Group acquires all shares of  Agraria Azucarera Andahuasi.

Hochschild Group exercised its right to purchase the remaining 30% of the shares of the Moris Mine (in the north of Mexico).

$14 million: Tecnología Alimentos S.A. (TASA) buys the De Ferrari group’s fleet.

$13.9 million: Merger between Hewlett-Packard Peru SRL and Electronic Data Systems del Peru SRL.

$5 million:
Acquisition by the Romero Group (Pesquera Centinela S.A.) of the freezing plant of the Corporación Pesquera Inca S.A. (Copeinca).
Acquisition and development of the Lima Sur Real Estate Project (valued at US$600 million) by  Grupo Inmobiliario.

$100 million:
Agroindustrias San Jacinto S.A. merges (by absorption) with its subsidiary Copasa Trading.

GFK Custom Research Latam Holding S.L acquires Conecta (opinion survey and market analysis company).

$3.5 million:
Sul América compañía Nacional de Seguros sells Corcovado S.A. (real estate company).

$15 million:
Inversiones Centenario S.A.A. merges with three subsidiaries dedicated to real estate business.

$5 million:
Sociedad Agrícola Don Luis S.A. becomes associated with Agricola Riachuelo S.A.C. for the construction of a fruit packing plant for exports.
Undisclosed: Falcon Family sells its shares from Industrias Plasticas S.A.

$5.5 million: Pesquera Doña Crolina S.A. buys 100% of the shares of the Consultora Integral de Inversiones y Negocios  S.A.C.

$555 million:
The Brescia Group acquires 84% of shares of the cement factory Lafarge Chile.

Shareholders sell shares of Afro Pacha S.A.

$96 million:
BCP buys Edyficar, one of the most relevant players in the microfinance market in Peru.

US $10 million: Picasso Candamo Group buys Farmaceutica del Pacifico S.A. which belongs to the Gloria Group.

US $4.5 million:
Compañia Pesquera del Pacifico Centro S.A. acquires 100% of shares of the Pesquera Santa Claudia.

US $36 million:
Picasso Candamo Group transfers controlling stake of Agroindustrias San Jacinto S.A.A. to the Gloria Group.

US $28 million: Compass Group (Company specialized in investment management ad advisory) buys the Centro Corporativo Miracorp.

US $45 million:
Ferreyros, leading marketer of capital goods, acquires 100% of actions of Centrac Corporation, family enterprise that distributes the Caterpillar trademark in Guatemala, El Salvador and Belice.

Translated from Spanish by Diana