Colombia Rises as Second in Latin America for Mergers and Acquisitions with More Money and Fewer Deals in 2023
The mergers and acquisitions (M&A) landscape in Colombia is currently marked by notable contrasts. Although the total value of transactions has risen significantly, the number of deals has decreased throughout 2023. From January to September, Colombia recorded 183 transactions, representing a 24% drop compared to the same period in 2022. However, the aggregate value of these transactions reached $5.934 billion, which is an impressive 82% increase.
Colombia’s Position in Latin America for 2023 Mergers and Acquisitions
In Latin America, Colombia has firmly established itself as the second-largest market for capital mobilization, following Brazil, which topped the region with a total of $37.086 billion in transactions. Throughout Latin America, there were 2,118 transactions, reflecting a 4% decline in the number of deals, but an increase of 24% in total transaction value.
Sector Performance
The report, compiled by Aon in collaboration with TTR Data and Datasite, highlighted several sectors that thrived during this period. Notably, the energy, infrastructure, and technology sectors showed robust activity:
- Renewable Energy: This sector experienced a staggering 183% increase in the number of transactions.
- Specialized Software: Led the M&A activity in Colombia with 21 transactions, although this marked a 34% decline compared to the previous year.
- Banking and Investment: Accounted for 15 deals, reflecting a significant 50% drop.
- Oil, Gas, and Consumable Fuels: Recorded 14 transactions, demonstrating a remarkable growth rate of 250%.
Major Transactions
The standout transaction of the quarter involved Brookfield Renewable Partners and Qatar’s Investment Authority, which invested $1.5 billion to increase their stake in Isagen S.A. E.S.P., one of Colombia’s main electricity generators.
Investment Trends
Foreign investment in Colombia remains robust, with the United States leading the way. In the current year, it accounted for 37 transactions totaling $262.5 million. Other notable investing countries include Spain, Canada, Mexico, and Brazil. Colombian firms are channeling investments primarily into Mexico, Argentina, and Chile.
Outlook for 2026
Looking ahead, analysts foresee stable transaction activity in 2026, driven by advancements in technology applied to financial services, specialized software development, and renewable energy solutions. The ongoing energy transition and the development of both public and private infrastructure are expected to play critical roles in attracting new capital.
As Colombia solidifies its reputation as an attractive and sophisticated market, firms like Aon are becoming increasingly vital in managing risks and ensuring the security of transactions. “More companies are integrating insurance solutions and risk assessments into their acquisition processes,” noted Pedro da Costa, director of Mergers and Acquisitions and Transactional Solutions for Latin America.
