In an otherwise uneventful year for global Mergers and Acquisitions (M&A), Mexico and the Caribbean have proven to be exceptions. In particular, Mexico’s M&A activity displayed a significant surge. Data published by Refinitiv showed a total of 127 deals, valued at $17.3 billion, announced in the first three quarters of 2023. This is a 38% increase as compared to the same period in 2022 which saw 149 deals amounting to $12.5 billion. Law.com’s International Edition further reports that activity linked to Bermuda led to a dramatic increase in Caribbean deal value.
While this growth can be credited to multiple factors, the changing geopolitical dynamics seem to be playing a crucial role. Geopolitical tensions, particularly in Europe and between the United States and China, are increasingly driving global investors to explore opportunities in Latin America. In this context, law firm Cleary Gottlieb Steen & Hamilton has managed to push its way to top of the rankings for Latin American M&A activity in 2023. This shift in focus toward Latin America might hold the promise of a more vibrant M&A landscape in the region.