Latin America M&A market grows 7% in Q1 2025

The Latin American mergers and acquisitions (M&A) landscape closed the first half of 2025 with 1,338 transactions, amounting to a combined US$43.81 billion, according to the latest TTR Data report in collaboration with Datasite and Aon. While the total number of deals decreased by 6% compared to the same period in 2024, the value of transactions rose by 7%, signaling a trend toward larger, higher-value operations in the region.

This divergence suggests that, despite a slowdown in overall dealmaking, investor confidence remains solid for strategic or high-impact acquisitions, particularly in sectors or geographies with strong growth potential.

Brazil Maintains Its Leadership in Regional M&A Activity

Brazil solidified its position as the most active M&A market in Latin America during H1 2025, accounting for more than 60% of all transactions in the region. The country reported 827 deals, marking a 1% year-over-year increase, and mobilized US$25.65 billion in capital, a significant 12% rise compared to the first half of 2024.

This performance underscores Brazil’s continued appeal to both domestic and international investors, driven by its large market size, mature capital markets, and increasingly dynamic private sector.

Varied Performance Across Major LATAM Economies

Beyond Brazil, the rest of the region showed mixed results:

• Chile experienced a notable contraction, with 155 transactions (down 15%) and a significant 56% drop in capital mobilized, totaling US$2.98 billion.
• Mexico also saw a decline, closing 121 deals, while the total value of transactions fell by 23% to US$6.82 billion.
• Argentina, in contrast, saw an uptick in activity, with 114 deals (14% increase) and US$3.49 billion in value (up 62%), driven possibly by renewed investor interest amid economic transitions.
• Colombia recorded a 31% drop in volume, with 107 transactions and a 14% decrease in total value to US$3.52 billion.
• Peru posted the sharpest decline, with only 62 operations (down 27%) and a 41% drop in deal value to US$1.03 billion.

These variations reflect each country’s specific economic and political environments, regulatory changes, and investor appetite.

Private Equity and Venture Capital Under Pressure

The private equity (PE) segment saw a marked slowdown, closing 69 transactions, a 36% decrease from the previous year. Of these, only 12 had disclosed values, totaling US$4.65 billion, a sharp 56% drop in deployed capital. The decline suggests a more cautious stance among PE investors, likely influenced by macroeconomic uncertainty, interest rate dynamics, and tighter liquidity.

The venture capital (VC) space also contracted, with 258 deals completed in the first half of 2025, down 25% from the previous year. Among them, 178 transactions had disclosed amounts totaling US$1.95 billion, representing a 27% drop in capital raised. This aligns with global VC trends where investors are increasingly selective, favoring startups with proven models and clearer paths to profitability.

Asset Acquisitions Hold Steady

While strategic and growth-stage investments slowed, asset acquisitions remained active. A total of 240 asset transactions were registered, and 101 of those had disclosed a combined value of US$7.79 billion. This segment appears to be more resilient, potentially driven by sector consolidation and divestment strategies amid shifting market conditions.