Mexico M&A and Private Equity Forum 2017
November 14, 2017 | Mexico M&A and Private Equity Forum
Acquisition opportunities have proliferated in Mexico thanks to a steadfast commitment to economic liberalization and reforms encouraging foreign investment. Nowhere is this more obvious than with the domestic energy sector. Since opening the oil and gas industry to foreign capital and development in 2014, five auctions have taken place. The most recent, in June, saw 10 oil exploration and production contracts awarded to bidders that include some of the world's major oil companies. More auctions are expected as early as April 2018, when the government will auction concessions for 35 offshore areas. Running a USD 321m current account deficit, domestic firms will look to finance productivity improvements in the transportation, manufacturing, consumer, power and energy sectors.
The enactment of liberalization policies and other reforms over the last few years have prompted cautious investors to shrug off concerns around Peso volatility, cartels and political relations with its northern neighbor. In fact, Credit Suisse recently revised its projections for 2017 Mexico GDP expansion to 2.4% from 1.7%. In a Mergermarket DealDrivers publication that surveyed industry practitioners, many predicted an acceleration of M&A activity in 2H17, especially in the mid-market segment of the economy.
Please join the Mergermarket team and esteemed panelists in this exploration of investment and M&A opportunities throughout the Mexican landscape.