Category: M&A

Peruvian energy generators Edegel and Etevensa, both controlled by Spanish utility company Endesa SA, have agreed a merger to form a new entity with assets worth $1.4 billion. Edegel is the country’s largest private electricity producer; Etevensa is the first combined cycle plant in the country, using natural gas from the Camisea project.

The shareholders of Colombian finance group Corporación Financiera Colombiana (Corficolombiana) have approved a merger with rival investment banking company Corporación Financiera del Valle (Corfivalle) to form a new entity with $2 billion worth of assets. The majority shareholder of both groups will be Colombian businessman Luis Carlos Sarmiento. The country’s financial sector has undergone extensive restructuring since the banking crisis of 1998 to 2001.

Cemex, the Mexican cement giant, posted a 125% increase in sales in the second quarter to $4.4 billion. The rise was attributed to the acquisition of RMC of the UK earlier this year. Operating income rose 60% to $751 million. However, EBITDA margins decreased to 22.6% from 32.6%, pressured by higher energy costs and charges at RMC.

Sales of Belgian brewer InBev in Latin America rose 12% to 18.2 million hectoliters in the first quarter thanks to the company’s 2004 acquisition of Brazil’s AmBev. Strong sales in the region, helped push group sales up by 4.1% to 47.3 million hectoliters in the same period. Sales of AmBev’s flagship brand Brahma outpaced Stella Artois and Beck’s with an increase of more than 17% driven by rising sales in Brazil. InBev is launching Brahma around the world this year.