Mergers and acquisitions in Portugal down 43% until March in a strong quarter for real estate

The market of mergers & acquisitions (M&A) lost momentum in Portugal during the 1st quarter of 2018, with y-o-y decreases of 19.1% and 43.3% in the number of transactions and in the negotiated amount, respectively.

According to the latest report from Transactional Track Record, released on April 4th, 3,1 billion euros were transacted in the M&A market during the first quarter of the year, reflecting a 43.3% y-o-y drop. There was also an 19.1% y-o-y downward in the number of transactions, which totalled 72 in Q1 2018 (89 in Q1 2017).

As the upward trend in real estate continued, the sector was the most active within this period with 15 transactions recorded, but, nevertheless, also representing an y-o-y 32% drop. Technology and internet were the areas that grew the most (133%), totalling 12 operations.

In the period under analysis, 31 inbound deals were recorded. Spain continued to be most active foreign buyer in number of deals, closing 10 operations for a total amount of € 156 million – 4 of which in the real estate sector, including the € 86 million investment from ORES Socimi into the acquisition of six retail assets in Portugal. France was also among the most active foreign buyers, with 7 transactions and investments amounting € 305 million, followed by Netherlands, with 2 deals that sum up € 450 million.

Looking into the total amount invested within the first three months, the top is headed by China with more than € 1.5 billion employed in the acquisition of Portuguese companies. «The deal of the quarter named by Transactional Track Record was the acquisition of Forum Montijo, Forum Sintra and Sintra Retail Park shopping centres by Immochan, in € 450 million investment», states the report.

Original Story: Jornal de Negócios
Photograph: Forum Montijo
Translation and Edition: Prime Yield