How many companies were sold in 2024 in Argentina and why 2025 could be different

In 2024, 73 sales of companies were completed in Argentinaand 13% less than the 84 registered in 2023, according to the latest semiannual report of First Capital Group.

Although there were fewer transactions, the amount was higher: This year’s mergers and acquisitions meant a total value of US$3.4 billion versus the US$2 billion corresponding to those of 2023.

For specialists, with the new government, 2024 was a transition year for mergers & acquisitions (M&A)as happened years ago before cycle changes and expectations. Moments such as the period 2013-2016 or the beginning of the pandemic had less activity, followed by stages of gradual recovery.

In these contexts, not only investment and expansion strategies are redefined. “Also change business models to achieve greater efficiency and adaptation to new dynamics, preparing for a more competitive and sustainable environment,” he explained. Miguel ArrigoniCEO of First, who participated in the debt restructuring of Molino Cañuelas and brought Clairfield International, a firm specialized in M&A based in Switzerland, to the country.

Yes ok the level is below the historical average of 100 annual transactions, 2025 could be a different yearwith a rebound that could even exceed this number. Greater movement is expected from local buyers who are looking for opportunities to get into other areas and there could be developments with companies that are bankrupt or go into default.

The panorama shows encouraging signs of an incipient revivalwith the promotion of strategic sectors such as oil & gas, mining and technology in a scenario of greater stability and that already generates renewed interest in investors.

In that sense, there was a change in the participation of buyers: historically, a 55% corresponded to foreigners and a 45% to nationals. This year, Argentines were the majoritywith a 52% of representation, while the international ones meant the 48%thus reflecting a slight recovery of local prominence and his confidence in the country.

Regarding the origin of external buyers, the American leadershipfollowed by the growing regional appearance and the stable presence of Europeansmainly from Spain y United Kingdom.

“Argentina can consolidate itself as a dynamic and competitive investment location. It is key to capitalize on natural resources, human talent and the regulatory framework. If this aligns with an economic recovery similar to that experienced by countries in the region, there is potential to exceed historical levels and project a diversified and growing M&A market“, considered Arrigoni.

Fernando Garabatopartner of Deal Advisory and Financial Industry of BDO ArgentinaHe added that “there are companies seeking to integrate operations into their value chain and purchases to gain market share that complement existing businesses.” “It will be a very good year. The growth of the economy will mean that some companies must expand inorganically through the purchase of other. Local players will remain active and the price opportunities end: in 2025, they will be given by the synergies and the potential of the assets to be acquired,” he said.

Although there are undervalued sectors compared to their regional peers, the drop in country risk by more than 1,200 points and the exchange rate gap to 10% improve the valuation outlook of companies. “They motorize the incipient interest of investment funds and private equity”Gabato highlighted.

Nevertheless, Fernando Zoppipartner of Martinez of Sickle & Wheel (MHR) −study that participated in the sale of ExxonMobil Exploration (EMEA) to Pluspetrol−, opined that after the depressed values ​​​​especially until 2023, “there are still interesting prices“, and highlighted “energy and mining as the star sectors that will remain strong”, boosted by the projects in Vaca Muerta and the north.

At the same time, he anticipated the possible arrival of external private investment: “The prospects are very good due to the transactions in process and the improvement of macro variables and Government policies. There has not yet been an entry of international players. The activity was energized by those who were present. Probably, the lifting of the stocks and the deregulation of the economy will encourage the inflow of capital from abroad”.

Argentina retains its position as the fifth most relevant market in Latin Americawith approximately 8% of operations in the region, where volume also fell between 10% y 15% annual. Brazil is on the podium with close to 60%; followed by Mexico y Chilecon 13% each; while Colombia remained stable.

Although in the country small and medium scale operations predominate2024 ends with recent larger agreementsespecially in segments that weathered the ups and downs with resilience and exhibit the greatest potential. Energy, banking and finance, technology, and industry and mass consumption involved more than 75% of the deals:

• In it energy red, YPF continued its strategy of getting rid of non-strategic assets, Pluspetrol stayed with the ExxonMobil Argentina operation in Vaca Muerta and GeoParks bought four hydrocarbon blocks in Río Negro to Mercuria Energy Trading.

• In renewable energiesthe investment of Stellar in 360 Energy consolidated its commitment to clean sources for its operations in the country.

• In miningalthough there was more moderate activity, the country is positioned as long-term strategic destination in lithium, copper, gold and silver. He highlighted the investment announcement by US$500 million of Rio Tinto to expand the production capacity of the project Corner which he recently acquired.

• In it financial sectorthe sale of HSBC a Galiciamaking it the second largest bank in the country.

• In industry & retail, Newsan bought the local business Procter & Gamble, which marked the entry of the national group into the mass consumption sector and the country’s departure from the global giant.

• Technology represented more than 20% of transactions. Although it does not strictly correspond to M&A, the record capital raising of US$300 million by Ualathe largest private injection of this type in Latin America in the last three years.