M&A IN LATIN AMERICA
Outlook for mergers & acquisitions in Colombia and Latin American THE GAMING SECTOR IN COLOMBIA IS NOW MATURE ENOUGH TO ATTRACT THE ATTENTION OF INTERNATIONAL INVESTORS AND EXPERIENCE THE SAME CYCLES OF CONSOLIDATION WITNESS ELSEWHERE. ELSEWHERE MARKETS ARE OPENING UP TO OPPORTUNITIES AS JUAN CAMILO CARRASCO AND JULIANA DUQUE REPORT
Introduction In the last decade, Colombia has made significant progress in its business environment, creating one of the most stable legal and financial regimes for foreign investors who are willing to diversify their portfolio of interests and expand in the growing LATAM region. This was further reinforced when Colombia became the first jurisdiction to approve a specific legal framework for the online gaming industry, creating a stable and safe jurisdiction for local and foreign investors. Figures from December 2022 showed the Colombian online gambling industry accounted for a total turnover of US$ 7 billion 1 , representing growth of more than 70 percent compared to 2021. Whilst figures for 2023 are not yet available, we are expecting the year to show a similar rate of growth. The size and growth experienced by the country make Colombia an increasingly important market. It has also mad e
Colombia an attractive market to operators looking to build profitable operations and extend their brands. The delayed effects of the pandemic materialized during 2023, impacting the M&A industry in Colombia, as transactions decreased by 20 percent compared with the 12 months of 2022. Other Latin Americans jurisdictions were also severely affected as the data in figure 1 opposite shows. Despite the declines experienced in 2023, expectations for 2024 are growing. There is an expectation that transactions will be boosted by interest among private equity investors searching for a business in Latin America to diversify their portfolios, and the possibility that interest rate reduction will improve the conditions required to finance these types of projects. Set against that, however, is uncertainty over political governance in the region.
1 Source: Coljuegos
IMGL MAGAZINE | APRIL 2024
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