Spain’s M&A activity soars in February

Spain's M&A activity soars in February

February’s M&A activity in Spain was almost double that of the same month last year according to figures in TTR’s monthly Iberian report.

Comparing figures from last February to the same month last year sees a rise of 185 per cent from around 3 billion Euros then to 5.305,23 billion Euros this year.

 

Breaking down the figures, between deals announced and those closed, 121 mergers and acquisitions were recorded this February along with 13 private equity transactions. The latter totaled 1,666.11 billion Euros. In addition, 20 venture capital deals worth 19.5 million Euros were struck.

The most active sector so far this year has been real estate where a total of 61 mergers and acquisitions have been recorded. Following this is the internet with 20 operations and, in third place, technology with 17.

FOREIGN ACTIVITY

Looking at what’s coming in from abroad, the UK and France have been the most active M&A companies in Spain. The UK has made 13 transactions while France has weighed in with 11. Putting the same activity into hard currency, things look slightly different. The UK still comes top with 598.8 million Euros but the second highest is Belgium which has put in 400 million Euros.

As for Spain’s activity going out, France has been its main target for M&A deals. Five were closed there while three were closed in each of the UK and the USA. But convert that into actual expenditure, and the picture is again slightly different. The highest combined M&A investments went to Chile with 948 million Euros while the USA was closely behind. Spain invested 922 million Euros there.

DEAL OF THE MONTH

This arguably came from New York based capital management firm Cerburus aquired Renovalia Energy in February this year in a deal worth a straight one billion Euros.

Renovalia Energy specializes in the promotion, engineering, construction, production and sale of electricity generated through renewable energy sources. These include wind power, thermal solar power and small hydro power.

It operates in six countries and has more than 650 megawatts of power generation under management along with a global development pipeline of wind farms and solar PV plants.

As for Ceberus, it describes itself as one of the world’s leading private investment firms, and its own reports say it has 29 billion Euros under management worldwide.

Its interests in Spain were strengthened last year when it acquired two wind farms from Civis Corporation Group. It also pounced in the 2008 crash as it came in search of toxic assets and real estate deals gone wrong.

In 2013, Cerberus created Madrid based affiliate Promontoria Plataforma, and appointed José María Aznar Botella as that organisation’s partner and advisor. Aznar Jr, as he is otherwise known, is the eldest son of former Spanish Prime Minister José María Aznar and Ana Botella, former Mayor of Madrid.

 

For information on foreign investment in Spain, contact corporate law Argali Abogados.

 

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