Spain’s economic graph continues its upwards trend

Spain's economic graph continues its upwards trendThe Spanish transaction market is continuing to grow with the results seen in the latest findings from the monthly report of Transactional Track Record (TTR).

In April of this year, the market recorded 131 mergers and acquisitions, totaling 5,080 million euros in operations. While this represents a 25.57 per cent decrease in the number of operations when compared to April of 2017, it actually comes to an increase of 7.86 per cent in mobilized funds.

Capital gains

Between January and April a total of 631 transactions were recorded with 244 of them accounting for a total of 20,070 million euros. Among all this, the most active sector of the year was real estate with 193 operations, followed by technology with 85, then the Internet with 43. While these figures show a decrease in operations of 17.19 per cent when compared to the same period of last year, in terms of actual capital, they represent an increase of 25.6 per cent.

April was also good for Spanish private equity transactions. Although the number of operations of eight was down 68 per cent on April last year, the figure of 1,912 million euros actually represented a 31 per cent increase for the same period last year.

Venture capital’s Eurostar

In April alone, 19 operations were recorded in venture capital to the tune of 11.77 million euros, an increase of three per cent for the same month last year.

Venture capital received a further boost in April with it was announced that six venture capital funds would share the task of raising 2.1 billion euros of private investment for European companies. The announcement was made through VentureEU, which represents pan-European venture capital.

Spanish international strategy and capital firm Axon Partners Group put its name to the agreement. The company focuses its venture capital on funding technology while also specialising in connecting Europe with emerging markets. Axon president Francisco Velázquez said, ‘Latin American pension funds and family offices…are very interested in the project, and there is a lot of appetite for that kind of investor to get into the European technology and venture story because the average returns are getting better and better, and are already above [those in the] US.’

Deals of the year

The study also included five IPOs and ten capital increases so far this year with the transaction of the month being the acquisition of OHL Concesiones by IFM Investors for 2,775 million euros.

Looking at activity by Spanish companies, Portugal was chosen for most of their investment operations with 12 occurring in the months up to April. This was followed by The United States with eleven transactions. In the meantime, the countries with the greatest number of investments made in Spain during the same period were the USA with 31, Germany with 18, and The United Kingdom and France with 17 apiece.

For more information, please contact corporate law firm Argali Abogados

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