This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

S&P Expects Merger Activity To Pick Up In The Americas This Year - A Look At The Sectors

NEW YORK, April 12, 2013 /PRNewswire/ -- The pace of M&A activity in the Americas is expected to pick up this year, according to two reports published today by Standard & Poor's.    The reports, "Economic Growth and Opportunities in Several Markets Will Fuel M&A Activity in Latin America" and "North American M&A Outlook Sector-by-Sector" can be found at ratings.standardandpoors.com/corporates/mergers-and-acquisitions.html.

Latin America

As global economic conditions gradually improve, leading Latin American companies are expected to use the ample liquidity on their balance sheets to take advantage of low valuations of distressed competitors in the region and abroad, according to  "Economic Growth And Opportunities In Several Markets Will Fuel M&A Activity in Latin America."  The report says that the M&A volume remains intense in Brazil, Mexico, and Colombia, even if at lower levels than the historically high levels of 2010 and 2011. 

M&A transactions over the past three years have been primarily made through cash in hand or stock, the report says, and there generally has not been an impact on credit quality, although that may not necessarily continue.

"Given currently low interest rates, expectations for economic growth, and some attractive valuations of target companies, Latin American companies may turn more aggressive in their expansion strategies, says Eduardo Uribe-Caraza, managing director and author of the report.   "If they pursue large, debt-funded acquisitions, this could bring a deterioration in their liquidity and overall financial risk profile, leading to possible downgrades."    

Outbound activity by Latin American companies purchasing operations abroad, has also been significant, as some of the large regional players, attracted by low equity valuations and business diversification, have sought expansion primarily in the U.S. and Europe.   

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs