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  • WHY LATIN AMERICA

  • Latin America in the world map

  • |

  • North America seems to be larger,

  • Source: Worldmapper

    Copyright SASI Group (University of Sheffield) and Mark Newman (University of

    Michigan).

  • Income per capita in the region is similar to the world average.

    More than 300 million of latinamericans have acquired a middle class standard

    with an approximate income of USD$ 20.000 per year. This represent from 50%

    to 60% of the regional population. (Our Time, Raul Rivera, p. 135)

    World Poverty

    Source: Worldmapper

    Copyright SASI Group (University of Sheffield) and Mark Newman (University of

    Michigan).

  • The region has important hydrological resources. Colombia is positioned as the first country with more water resources per km2

    Source: Worldmapper

    Copyright SASI Group (University of Sheffield) and Mark Newman (University of

    Michigan).

  • The region has the most important biological production capacity

    Bio-Capacity: crops, plain, forest and fishing.

    Source: Worldmapper

    Copyright SASI Group (University of Sheffield) and Mark Newman (University of

    Michigan).

  • 2,518

    1,185

    435

    321

    310

    243

    168

    65

    Brazil

    Mexico

    Argentina

    Colombia

    Venezuela

    Chile

    Peru

    Ecuador

    GDP 2011 (USD Billions)

  • Colombias GPD growth vs the Wolrds GPD 2002 - 2011

    2.5

    3.9

    5.3

    4.7

    6.76.9

    3.5

    1.7

    4

    5.9

    -4

    -2

    0

    2

    4

    6

    8

    GPD growth: Colombia vs. World (%)

    2002 2003 2004 2005 2006 2007 2008 2009

    2010 2011

    **Colombian growth Jan-Jun 2012: 4.9%

  • CIVETS: an opportunity for diversification

    ColombiaIndonesia VietnamEgyptTurkeySouth Africa

    CIVETS

    Leaders in the wolrd market

    CIVETS economies will have

    important GPD growth

    - Michael Geoghegan,

  • Global M&A Heat Chart

    *US million.

    Based on mergermarket companies for sale intelligence:

    *Merger Market. M&A Round-up for 2012

  • Global M&A Overview

    *Merger Market. M&A Round-up for 2012

  • Global M&A Overview

    *Merger Market. M&A Round-up for 2012

  • Global M&A Overview

    *Merger Market. M&A Round-up for 2012

    Private Equity Buyouts

    Asia-Pacific (excl Japan) saw US$ 27.9bn-worth of buyout deals, sliding 28.9% on 2011 (US$ 39.3bn). 2012 was the second highest year for buyouts in the region since 2007 (US$ 49bn).

  • Latin American M&A Overview

    *Merger Market. Latam M&A Round-up for 2012

    Telefnica SA acquires BrasilcelNV (50% stake). Deal value: US$ 9

    billion.

    Amrica Mvil(Mexico) acquires

    Carso Global Telecom SAB (99.4%). Deal value: US$ 28

    billion.

  • Latin American M&A Overview

    *Merger Market. Latam M&A Round-up for 2012

  • Latin American M&A Overview

    *Merger Market. Latam M&A Round-up for 2012

    Industry Analysis

    2010 2011 2012

    Latin American M&A Sector Breakdown 2010 Deal Value

    Latin American M&A Sector Breakdown 2010 Deal Count

  • M&A in the Pacific Alliance

    M&A Europe

    M&A US

    ChileColombia M&A EuropeM&A US

    *ISI Emerging Markets

  • M&A in the Pacific Alliance

    PeruMexicoM&A US

    M&A Europe

    M&A US

    M&A Europe

    *ISI Emerging Markets

  • Foreign Investment Pacific Alliance

    *www.banrep.com

    Mexico

    Peru

    Mexico

    Colombia

    Peru

    2010:

    2011:

    2012:

    US$ -623 million

    US$ 80 million

    US$ -1.6 million

    Chile

    2010:

    2011:

    2012:

    US$ 20 million

    US$ 650 million

    US$ 3,074 million

    2010:

    2011:

    2012:

    US$ 10.7 million

    US$ 19 million

    US$ 120 million

    2010:

    2011:

    2012:

    US$ 57 million

    US$ 15 million

    US$ 224 million

    2010:

    2011:

    2012:

    US$ 279 million

    US$ 3,877 million

    US$ 0

    2010:

    2011:

    2012:

    US$ 478 million

    US$ 0

    US$ 0

    * Foreign Investment Committee.

    Colombia

  • *www.proinversion.gob.pe

    Chile

    Colombia

    Peru

    Mexico

    2010:

    2011:

    2012:

    US$ 13 million

    US$ 205 million

    US$ 12 million

    2010:

    2011:

    2012:

    US$ 1.7 million

    US$ 0.3 million

    US$ 3 million

    Chile

    2010:

    2011:

    2012:

    US$ 73 million

    US$ 55 million

    US$ 28 million

    * www.economia.gob.mx

    Mexico

    2010:

    2011:

    2012:

    US$ 464 million

    US$ 464 million

    US$ 476 million

    Colombia

    2010:

    2011:

    2012:

    US$ 1,048 million

    US$ 1,057 million

    US$ 1,093 million

    2010:

    2011:

    2012:

    US$ 1,347 million

    US$ 1,381 million

    US$ 1,389 million

    Foreign Investment Pacific Alliance

    Peru

  • Multi-Latins in the Pacific Alliance

    *ISI Emerging Markets

  • Banks

    *ISI Emerging Markets

    Chile

    Mexico Colombia

    Peru

    00

  • Market Capitalization

    in Mila Markets

    March 2013 (US Million)

    Total Volume

    Negotiated Markets

    March 2013

    (Us Million)

    Total Issuers Mila

    March 2013

    Currents Intermediaries To report operations

    through Mila infrastructure.

    *Mila News. April 2013.

    Mila News

  • Ease on doing business

    *Doing Business 2013. IFC.

    Rank on the ease of doing business

    In the rank that qualifies countryas policy makers, Chile stands at37, Peru at 43, Colombia at 45and Mexico stands at 48.

  • Starting a new business

    Chile

    Starting a business

    requires 7 procedures, 8 days and costs 4.5% of income

    per capita.

    ColombiaHas reduced

    the time required from 60 days to 14, the cost from

    28% of income per capita to

    8% and procedures

    from 19 to 9

    Mexico

    Requires 6 procedures, 9 days and costs

    10.1% of income per

    capita.

    Peru

    Requires 5 procedures, 26 days and costs

    10.6% of income per

    capita.

    *Doing Business 2013. IFC.

  • Protecting investors

    *Doing Business 2013. IFC.

    How strong are investor protections?

    Colombia and Peru have ahigh score indicating strongerprotections. Chile stands inthe rank 32 and Mexico inthe rank 49.

  • *Doing Business 2013. IFC. Page 3.

    Business-friendly regulation

    Chile, Peru, Colombia andMexico are in the top 5ranking of Latin Americancountries on the ease ofdoing business thatmeasures the economieswith the most business-friendly regulation.

  • Ease of paying taxes

    *Doing Business 2013. IFC.

    Globally, Chile stands at 36,Peru at 85, Colombia at 99and Mexico at 107 in theranking of 185 economies onthe ease of paying taxes.

  • In 2007 Colombias government further institutionalized itscommitment to regulatory reform by establishing the Private Councilfor Competitiveness. The council is made up of business associationsand private sector players working closely with the government topromote sound, business friendly regulatory practices. Peru andMexico have advanced in regulatory practice as well.

    *Doing Business 2013. IFC. Page 27.

    Regulatory practices

  • *Doing Business 2013. IFC. Page 9.

    Colombia has achieved considerable success in improving businessregulation since 2005, along countries such as Georgia, Rwanda,China and Poland. Peru stands at 32 and Mexico at 39 in the globalranking

    Regulatory practices

  • Colombia: key principles for foreign investment

    Principles

    Equal treatment

    UniversalityAutomatic

    Nature

    Stability

    *Doing Business 2013.

  • Chile: key principles for foreign investment

    Principles

    Political and Economic Stability

    An efficient and high level

    of connectivity

    Important network of free trade

    agreements

    The legal transparency and stability for foreign investment

    *Foreign Investment Committee Chile

  • Mexico: key principles for foreign investment

    Principles

    Business friendly

    environment

    Competitive labor costs

    Network of free trade

    agreements

    Large logistics platform

    *www.promexico.com

  • Peru: key principles for foreign investment

    Principles

    Equal legal treatment (same rights as Peruvian

    investors)

    Non-discrimination based on the States

    ownership of a corporations equity

    Right to private property;

    protection against takings

    Right to engage in the economic activity of their

    preference

    Freedom of business or

    industry

    Freedom of foreign and local

    trade

    *www.proinversion.gob.pe

  • Colombia: Free Trade Agreements

    Canada

    United States

    Mexico

    Caribbean Community

    Free Trade Agreements

    EFTA

    Korea

    Japan

    European Union

    Mercosur

    Turkey In negotiation,

    concluded but not signed.

    Colombia has 19 agreements with 59 countries

    Cuba

    Venezuela

    Guatemala El Salvador

    Honduras

    Peru

    Panama

    Costa Rica

    I

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