Chile&& s M A Market Shrinks Sharply Amid Political Reset and Economic Crosswinds Chile's mergers and acquisitions market contracted greatly in early 2025, according to TTR Data's latest quarterly report. The country saw just 60 handle the fi

INSUBCONTINENT EXCLUSIVE:
and 67% respectively from the same period last year
This marks a significant cooling in transactional activity after a period of volatility.The software sector led with nine transactions,
while business and professional services followed with six
Cross-border activity remained subdued
Chilean firms mainly invested in Peru, completing three deals.Meanwhile, Spanish and US buyers each executed four acquisitions in Chile
Private equity activity also dropped, recording just three deals worth $26 million, a 40% decline in deal count.Venture capital mirrored
this trend, with 13 deals totaling $74 million, down 61% in number and 90% in value year-on-year
and Economic Crosswinds
(Photo Internet reproduction)The pandemic, social unrest, and failed constitutional reforms fueled uncertainty and slowed deal-making
In 2024, Chile registered 97 M&A transactions, a 14% drop from the previous year, and total deal value hit a historic low at $3.985
billion.However, recent local elections brought moderate parties back to the fore, signaling a return to political stability
OutlookForeign direct investment (FDI) also fell in early 2025, with net inflows of $2.3 billion in the first two months, down 24.6% from
the previous year
Despite these improvements, challenges persist.Inflation remains above target, and political reforms on pensions and taxes remain stalled
2025 reflects caution but not retreat, as businesses and investors wait for clearer signals before reengaging at scale.