During the second half of 2024 Mexico, Argentina, and Chile lead in relation to corporate venture capital investment, as the number of active funds has doubled between 2020 and 2023, making these countries the fastest growing globally, according to the Wayra Hispam report. The 80% of investments in innovative startups are concentrated in four main countries: Chile, Argentina, Mexico and Colombia.
The corporate venture capital sector alone has increased its share of Venture Capital investments from 10% in 2022 to 15% in 2023, contrary to the global trend of contraction.
In November, the Mexican Mergers and Acquisitions (M&A) market, according to Seale & Associates, registered 16 domestic operations and 3 international transactions. The movements of companies such as FEMSA, FRESNILLO PLC, FIBRA Prologis, Ayesa, Traxión and Grupo Bimbo stand out.
According to Forbes Mexico, French companies are investing in Mexico because of its “pro-business” government, mainly in the infrastructure, health, mobility, transportation, energy, construction, banking, technology and communication sectors. In a similar direction, the sectors to which belong to international companies that invest in Latin America, are linked to 27% of the manufacturing industry, chemicals, agriculture; while 24% belong to financial and energy firms. The other growing sector in our country is the consumer products industry, which includes e-commerce, food and clothing, with a 22% share, the same percentage obtained by the transportation and logistics industry.
Most of the companies in Latin America this year disbursed capital in favor of startups dedicated to financial services, transportation, mobility and logistics. Mexico has financial offerings and public services as advantages for foreign investment. In a comparison among 50 countries, Mexico was ranked 16th according to information gathered by the World Bank.
Mexico is currently attractive for InsurTech investments despite global uncertainty. The focus on big techs in the insurance market brings with it opportunities for innovation and collaboration for insurers and InsurTechs.
Latin America is on the investors’ radar, especially in the infrastructure, artificial intelligence and energy transition sectors, according to BlackRock. On this matter, Mexico is well regarded globally, thanks to nearshoring and friendshoring business practices, distributing products to the United States with a growing trend by the private sector to invest in infrastructure projects, such as ports, roads, hospitals and everything to do with data centers and clean energy.
Despite the strict migration policies and the 25% increase in tariffs that will be imposed by President-Elect Donald Trump and the latent risk of our country being excluded from NAFTA, Mexico will continue to be a focus of investment, thanks to its proximity to the United States, the largest industrial market in the world, in addition to being a country with a great source of labor and raw materials. Mexican companies have sought to diversify their operations through acquisitions in other Latin American and global markets. At the same time, foreign companies see Mexico as a platform to access other Latin American markets, due to its geographic proximity, trade agreements such as the T-MEC and the strengthening of its logistics infrastructure.
The country continues to position itself as a key destination for international investments, which makes M&A transactions an essential component in the evolution of its economy.
In VAHG we provide legal services with great experience in Mergers and Acquisitions, being leaders in this Practice in Mexico. We are backed by a solid legal infrastructure with more than 30 years of combined experience, focused on assisting our Clients in a timely manner and with effective and practical solutions, with the commitment and integrity within the legal framework of Mergers and Acquisitions.
For more information regarding our professional services, our Mergers and Acquisitions Attorneys are at your service.
| Fernando Hernández Gómez | Senior Partner
Mergers & Acquisitions +52 (33) 38171731 Ext 225 | fhernandez@vahg.mx |
Elvia del Carmen Ríos Saldaña | Partner
Mergers & Acquisitions +52 (33) 38171731 Ext 228 | erios@vahg.mx |
**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.