And if the start to 2016 is any indication, the deal-making doesn’t appear to be stopping any time soon. In all of Latin America in the first quarter of 2016, inbound deal values reached $8.3 billion USD — a 70% spike over the same period last year, per the report.

In addition to currency and economic volatility being experienced throughout the region, Baker & McKenzie’s “Cross Border M&A Index” highlighted Colombia’s adoption of free-market policies as a factor in its ability to attract more M&A interest. A growing middle class in the nation of nearly 50 million people is another draw for investors.

“While Brazil and Mexico had the highest number of inbound deals in 2015/16, smaller countries like Chile and Colombia were close behind,” states the report. “Much of this activity is driven by growing demand from the region’s expanding middle class for consumer products as well as the business and financial services that provide the means to purchase them.”

The European Union and the North American have been the two regions responsible for the bulk of the inbound transactions in Colombia since the beginning of 2015, while the $5.2 billion USD coming from North America accounted for the vast majority of the value.

The first quarter results of 2016 are in line with earlier predictions from Baker & McKenzie about the potential for mergers and acquisitions in Latin America. And unlike in the past, foreign investors are looking beyond the traditional commodities sector while looking for regional companies to purchase. “Buyers are not only targeting the region’s energy and infrastructure sectors, but also pharmaceuticals, technology, finance and real estate,” states the report. “In 2015/16, consumer goods and financial services were the top two sectors targeted by investors in Latin America.”

In Colombia, the year kicked off with the high-profile, $2 billion privatization of public power utility Isagen in January. The Juan Manuel Santos administration took a lot of heat for the selling the electricity generator to Canadian company Brookfield Asset Management, a move several legislators and labor unions had tried to block throughout 2015.

Another headline-making merger was finalized in May when Denton’s, the world’s largest law firm by number of attorneys, acquired the Bogotá-based Cárdenas & Cárdenas, a firm that has been operating for more than a century. Denton’s had been eager to enter Latin America — the only region it didn’t have a presence in — and found ideal partners in Cárdenas & Cárdenas in addition to Mexican firm López Velarde. “This combination will provide us with a global reach and expertise that will benefit all of our current and future clients,” said Bernardo Cárdenas, the firm’s managing partner, when the deal was initially announced.

The national beer market has also been affected by the $100 billion USD beer merger sweeping the world. As a condition of Anheuser-Busch InBev and SABMiller combining forces, South American subsidiary Ambev SA will hand off its Colombian operations, which include Bogotá Beer Company, to its parent company. With this condition met, the Colombian regulator approved the deal in mid-May.

Another recent report, Merger Market’s “Latin American M&A Spotlight,” predicted that M&A activity is here to stay in Colombia for the near term — particularly when it comes to intra-regional deals. It surveyed investors and corporate executives focused on Latin America, and they predicted that Mexico and Central America would see the activity inside the region. After that comes Colombia.

“Northern Latin America was identified as the area where the most intra-regional transaction activity was likely to occur, with over two-thirds of the survey respondents identifying Mexico and other Central American countries as being the busiest centers for intra-regional M&A,” states the report. “Colombia was the nearest rival to the northern countries, and was identified by 48% of those polled as a target region for transactions within the continent.”

Colombia’s relatively positive regulatory environment was cited as one reason those outside the region will continue to prefer mergers there instead of complex locations like Brazil and Argentina. Overall, Colombia was ranked as the fourth most-favorable regulatory environment of the nations surveyed, behind Chile, Peru, and Mexico.

Photo: Jaime Trujillo, managing partner of Baker & McKenzie, speaks in Colombia.

Update (19 January, 2016) Gran Tierra Energy has closed on its purchase of Petroamerica, says shareholders have been paid – See the SEC Filing: HERE

The tender offer was voted on today and overwhelmingly approved by the holders Petroamerica common shareholders at the special meeting of the Petroamerica Shareholders held earlier today at the Dentons Alberta, Canada law offices. Holders of over 32.05% of the outstanding Petroamerica Shares voted at the meeting, with approximately 98.05% in favor of the buyout.

Today, Petroamerica also obtained a final order from the Court of Queen’s Bench of Alberta to implement the Arrangement.

The Arrangement is more fully described in the management information circular and proxy statement of Petroamerica dated December 3, 2015, which may be viewed on Petroamerica’s profile at www.sedar.com.

Under the arrangement, Petroamerica shareholders will receive, at their election, either 0.40 of a share of common stock of Gran Tierra or $1.33 Canadian Dollars in cash for each Petroamerica share, subject to a maximum of $101,301,755 of the consideration payable in cash.

Petroamerica Oil Corp. is a Canadian oil and gas exploration and production company with interests in fifteen blocks, located in Colombia’s Llanos and Putumayo Basins.  It trades on the TSX Venture Exchange under the symbol PTA.

The vertical amalgamation did not require shareholder approval and was completed to simplify the corporate structure of Petroamerica, said the company in a written statement.  No securities were issued in connection with the vertical amalgamation, and the shares of the subsidiaries were cancelled without any repayment of capital with respect to them.

A Special Meeting of Shareholders will be held next Monday, January 11, At Dentons Canada LLP In Calgary at 10:00 AM

Petroamerica Oil Corp. on November 12 agreed to be purchased by Gran Tierra Energy, Inc. (TSX and NYSE: GTE). With shareholders receiving either 0.4 share of Gran Tierra Energy for each share of Petroamerica Oil Corp stock, or $1.33 Canadian dollars cash per share, limited to 70% of the consideration payable in cash.

Ralph Gillcrist, Petroamerica’s President and CEO said regarding the deal: “This transaction ensures that the high quality assets of Petroamerica will be fully developed and the combination with Gran Tierra will create one of the best-positioned companies in the prolific Putumayo and Llanos basins of Colombia. For Petroamerica’s shareholders, the resulting pro forma company will bring improved liquidity, increased diversity and scale, an outstanding near-term opportunity set and most importantly, the financial capability and balance sheet strength to maximize value of Petroamerica’s portfolio.”

Cover photo – Aguatoca is a popular swimming hole in Casanare, the mostly rural Colombian department where Petroamerica’s Llanos-10 block is located. Photo credit: «Aguatoca» de Juan11211992 – Trabajo propio. Disponible bajo la licencia CC BY-SA 4.0 vía Wikimedia Commons

Bernardo Cárdenas, Managing Partner of Cárdenas & Cárdenas, said, “Having been a leading law firm in Colombia for the past 100 years, and as one of the first firms to work with foreign investors in the country, we are ready to take the next step. We firmly believe that the globalization of legal services is a reality and that joining such a prominent and large firm as Dentons is the right decision. This combination will provide us with a global reach and expertise that will benefit all of our current and future clients, while maintaining our tradition of high quality service.”

“Comprised of vibrant, opportunity-filled economies, the Latin American and Caribbean region is of significant import to our clients,” said Joe Andrew, Global Chairman, Dentons. “Entering the region with a presence in two of its top four economies, and with firms that are aligned with the high level of service and quality that our clients expect, is key to delivering on our strategy to have seasoned, local talent, wherever our clients need it.”

“In addition to the leading position that each of these elite firms hold in their respective markets, they add substantial experience across our practices and sectors,” said Elliott Portnoy, Global Chief Executive Officer, Dentons. “Many of our clients are already doing business in Mexico, Colombia and throughout the region, and a combination with Cárdenas & Cárdenas and LVHS will bring more than a century of experience in the community along with valuable knowledge in key areas.”

Dentons first signaled its intentions the region last year, when the firm appointed Jorge Alers as its Chief Executive Officer for Latin America and the Caribbean. Alers, who came to Dentons after serving as the General Counsel and General Manager of the Legal Department of the Inter-American Development Bank, has been focused on helping the firm meet its goal for whole firm combinations in Mexico, Central America, South America and the Caribbean.