-By ArdorComm News Network
October 17, 2024
In a year marked by rising interest rates and a slowdown in initial public offerings (IPOs), mergers and acquisitions (M&As) have gained renewed momentum, signaling a robust recovery for 2025. According to Dealogic data, M&A deals in Brazil reached R$195 billion as of October 2024, a 56% increase compared to the same period last year, surpassing 2023’s total of R$117 billion.
Notable transactions include Prio’s acquisition of the Peregrino and Pitangola oil fields, the sale of Santos Brasil’s controlling stake to France’s CMA CGM for R$6.3 billion, and Oi’s fiber broadband portfolio sold to V.tal for R$5.7 billion. The year’s largest deal so far was Auren’s acquisition of AES for $3 billion.
Sectors like infrastructure and oil and gas have seen significant activity, with upcoming concessions expected to boost deal flow through year-end. Agribusiness is also contributing, as restructuring in the sector drives M&A opportunities.
Anderson Brito, director at UBS BB Investment Bank, notes that private equity funds are increasingly active, while foreign investors are showing renewed interest in Brazilian acquisitions. “We’re seeing investors comfortable with Brazil’s risk,” he said. Meanwhile, Bank of America’s Diogo Aragão points out that many deals that stalled in 2023 are now moving forward, reflecting a rebound from a low base.
Despite the increase in volume, activity is still below the peak years of 2021 and 2022. However, banks are optimistic about 2025, with stronger pipelines and a positive outlook, bolstered by U.S. interest rate cuts and Brazil’s credit rating upgrade.
Key sectors driving M&A activity include consumer goods, retail, and infrastructure, with a strong performance expected in the first half of 2025.
Source: valorinternational.globo.com