Mexico: A Corporate/M&A: The Elite Overview

Background

M&A activity in Mexico remained resilient throughout 2025, following a year of stabilisation after the electoral cycles in both Mexico and the United States. While overall transaction volumes registered a decline compared to 2024, the total aggregate deal value increased, showing strong investor confidence despite a complex economic environment. According to TTR Data, the first three quarters of 2025 recorded a year-on-year rise of approximately 15% in deal value, largely driven by cross-border activity and consolidation in strategic sectors such as technology, manufacturing and infrastructure.

The Mexican M&A market continues to navigate a landscape shaped by multiple global and domestic dynamics: the recalibration of supply chains under the nearshoring trend, the persistence of elevated interest rates, and the reconfiguration of trade relations with the USA under the Trump administration. The interplay of these factors has produced both headwinds and opportunities for corporate activity, positioning Mexico as one of the most active and strategically relevant M&A jurisdictions in Latin America.

Key M&A Activity

2025 M&A activity in Mexico highlighted the industry-specific software sector as the leading category by number of transactions, representing roughly 29% of total M&A transactions (TTR Data 2025). This growth was driven by strong domestic and cross-border demand for technology-driven capabilities, including AI-enabled process automation, cybersecurity and enterprise digitalisation. Other sectors – such as real estate and internet, software and IT services – also recorded significant activity but at lower levels than in 2024. The real estate sector accounted for approximately 18% of total transactions but experienced a 47% year-over-year decline, while internet, software and IT services represented around 29% of transactions with a 24% decline. It is also worth noting that the banking and investment sector, despite ranking fourth in total transactions, registered a 6% increase compared to 2024 (TTR Data 2025). From an international standpoint – particularly in transactions where a Mexican company was the target – the manufacturing sector recorded notable activity. Taken together, these trends point to continued momentum in Mexico’s M&A market across both domestic and cross-border transactions.

The strategic partnership between Mexico and the United States has long been a cornerstone of Mexico’s appeal to foreign investors. Now more than ever, this relationship is pivotal as geopolitical shifts and trade tensions – especially between the United States and China – reconfigure global supply chains. Mexico’s ascension as the premier foreign trade partner of the United States is not merely a title but reflects deeper structural integration that continues to attract foreign investors.

The demographic and geographic advantages of Mexico still underscore the country’s attractiveness for nearshoring activities, also boosted by Mexico’s commercial force as the country with the most trade agreements in force. As businesses seek to mitigate risks by relocating manufacturing and operational bases closer to the USA, Mexico emerges as a logical choice. This nearshoring trend is expected to stimulate demand across various sectors in the Mexican economy, creating a fertile ground for M&A activities in the region.

However, this landscape of opportunity in Mexico’s M&A activity is not without its challenges. The political climates in both Mexico and the United States, each with recently elected governments, introduce uncertainty that could influence deal making. In the coming years, the relationship between the two countries may face additional strain, as recent decisions by the US government imposing tariffs on Mexican imports and then repeatedly postponing their application, along with the upcoming United States-Mexico-Canada Agreement renegotiation, present potential headwinds for cross-border activity. From a domestic standpoint, the Mexican government’s still-ambiguous approach to foreign investment and its policy direction across critical sectors such as energy, natural resources and fintech also create uncertainty for investors, directly affecting M&A dynamics.

Environmental, social and governance (ESG) considerations continue to play a role in M&A activity in Mexico, and the framework governing them is evolving. Domestically, two initiatives are shaping expectations: the Sustainable Taxonomy, which provides general guidance on how to classify sustainable economic activities, and the new Sustainability Information Standards (NIS), now formally part of Mexican Generally Accepted Accounting Principles (GAAP) and mandatory for financial reporting beginning with fiscal year 2025, which may impact due diligence practices.

At the same time, the policy direction in the United States – particularly the Trump administration’s stance of deprioritising ESG mandates – introduces uncertainty for cross-border investors navigating divergent expectations. As a result, while ESG remains relevant for due diligence, risk management and long-term value creation, its influence on M&A strategies in Mexico may develop unevenly and will require investors to closely follow regulatory and market signals over the next several cycles.

Artificial Intelligence

The role of artificial intelligence (AI) in M&A is increasingly significant. As AI continues to transform industries, its integration into M&A processes in Mexico is expected to bring about efficiency, innovation and transformative opportunities; this is also expected to further attract attention from sources of investment in several sectors as AI impacts how companies conduct their operations. For example, the healthcare sector is showing clear signs of this change: AI-driven solutions are optimising operations and improving diagnostics. Similarly, in logistics, AI tools for route optimisation, warehouse automation and real-time inventory management are creating attractive targets for strategic buyers.

We expect that the impact that AI will have in several sectors will significantly shape M&A activity in Mexico in 2026 and beyond. Several sectors poised for expansion are directly linked to the global AI boom, including real estate, energy and infrastructure supporting data centre development. These segments are expected to attract increasing investment as demand for computing capacity, power availability and specialised industrial facilities continues to accelerate.

Summary

In conclusion, while the M&A market in Mexico navigates through a period of both promise and unpredictability, the confluence of technological advancement, strategic nearshoring benefits and a focus on sustainable investment positions Mexico as a compelling destination for global investors. The cautious optimism of investors, mindful of the political and economic contexts, reflects a balanced approach to harnessing Mexico’s potential. As Mexico strides into a pivotal year, the M&A sector stands on the cusp of significant transformation, promising not only growth but also a deeper integration into the global economic fabric.