2014 has been a very important year for M&A in Spain, with operations reaching an investment of €79,500M, a figure not reached since 2007, and large operations by corporations, which had been years without buying to restructure their balance sheet. Although there is still a long way to go, it seems that 2015 will be the year of consolidation of M&A in Spain, and will have these trends as protagonists.
Foreign investors will remain interested in Spain
Foreign investment in Spain doubled in 2014. Among the most active sectors were construction, telecommunications and energy, attracted by low prices. Among the major purchases was the purchase of the Mexican Carlos Slim for 25.6% of FCC for €650M.
It seems that in 2015 foreign companies and private equity funds will continue to be interested in Spain. It will gradually become more difficult for investors to find the low prices they are looking for due to competition among them and excess liquidity. More and more investors want to take advantage of the low prices of Spanish companies and fewer and fewer good Spanish companies.
Most active sectors: Energy, IT and Real Estate
As last year, the most active sectors will continue to be energy, ICT and real estate.
M&A transactions–mergers and acquisitions-energy-sector/">The energy sector in 2014, after a few years of decline due to the uncertainty in the sector. Following a reform in the sector, the major Spanish companies have decided to divest and investors have decided to take advantage of the opportunity.
The real estate sector in 2014 has grown to 2008 levels, focusing mainly on tertiary assets (commercial premises, shopping centres and offices) and property packages. debt, while housing has yet to make a comeback. The main investors have been foreign, with Asian investors standing out.
"Although sectors that depend on consumption and the cycle will gradually be reactivated, as we are already seeing in the alimentación, which has been the protagonist of 14 operations in the month of January, placing it in the top 3 of the most active sectors" comments Diego Guiterrez of Abra-Invest.
Corporate divestitures will decline
Although companies will continue to make divestments, those with a healthier balance sheet will once again make purchases. Cross Border operations will be of great importance to diversify risks and to be prepared for a possible future crisis.
In 2014 we have already witnessed this trend with operations such as the purchase of the diagnostic unit of Novartis by Grifols or seeking for Coastal Energy by Cepsa.
Alternative financing will respond to SME needs
Banks will again lend money, although it is difficult to reach pre-2008 figures, but there will be debt for good companies and interesting operations.
In addition, the alternative finance market will continue to grow and companies, especially SMEs, will consider less traditional options.
"The success of the platforms is proof of this. Crowdlending and Crowdequity are having in our country, and crowdfunding in our country grew by 113% in 2014 reaching €62M" says Diego Gutierrez.
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