Argentina’s mergers and acquisitions market could grow significantly in the coming years if President Javier Milei’s economic reforms continue, Juan Tripier, director of M&A and corporate finance at PricewaterhouseCoopers (PwC) Argentina, told Reuters.
Investors have shown renewed interest in Argentina following Milei’s measures, which include sharp reductions in inflation and public spending, a restored fiscal surplus, and relaxed foreign exchange controls.
“Two, three years ago you contacted an international company, an international investor, and Argentina was a bad word. That has changed since Milei became president,” Tripier said in an interview with Reuters in Buenos Aires.
“There’s a lot of excitement,” he added. “That excitement is both shared by international players, or international investors, and local players.”
Tripier said that within three to five years Argentina could beat previous peak M&A years, when there were 120-150 transactions annually, with diversified activity across sectors such as agribusiness, food, and infrastructure.
Historically, Argentina’s deals involving multinational companies were dominated by energy, mining, and technology, though foreign investors are now expected to expand into other industries.
In 2024, Argentina recorded 99 M&A deals, the highest since 2019, with transaction values reaching $8 billion—the largest amount since 2017, PwC data showed.
Despite the surge, investors remain cautious due to lingering dividend repatriation restrictions and high country risk.
“Now you talk to investors abroad, they analyze opportunities. Before they would say: No, Argentina is out of the spectrum. Now they analyze the investment, they say: I want to wait and see if the economy really consolidates,” Tripier said.
Vaca Muerta, the world’s second-largest unconventional gas reserve and fourth-largest oil reserve, located in the province of Neuquén, is one of Argentina’s main attractions.
“With the increase in investments not only in upstream development but also in infrastructure—pipelines, processing plants, and liquefied natural gas projects—we expect realignments aimed at diversifying producers’ exposure, with some buying and others selling,” said energy lawyer Jose Martinez de Hoz of Martinez de Hoz & Rueda.
Daniel Dreizzen, former Secretary of Energy Planning and director at consultancy Aleph Energy, projects $11.553 billion in hydrocarbon exploration investments for 2024.
“There’s been a lot of M&A activity. At Aleph, we’re talking to investors who are very interested in Argentina—obviously with caution given our track record—but they’re looking at opportunities,” Dreizzen said.
(Reporting by Eliana Raszewski; Editing by David Gregorio)