Economic unrest is fueling Brazil’s M&A market in 2022

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Despite high benchmark interest rates and increased investor caution in times of economic unrest, well-capitalized companies and funds are poised to make 2022 another record-breaking year for mergers and acquisitions in Brazil.

Data from PwC tabulates a total of 807 deals announced in the first six months of the year, more than the same period in 2021, which currently holds Brazil’s M&A record.

For startups, it could be an ideal moment to merge with competitors or accept incumbent offers in exchange for resources to continue their growth trajectory.

The second half of the year is typically more auspicious for mergers and acquisitions, says Leonardo Dell’Oso, partner and deals lead at PwC Brazil. He emphasizes that there are multiple reasons to expect a record-setting year, even with inflation and the risk of recession in the U.S. and Europe.

Companies from sectors that benefited from the Covid pandemic — such as technology, financial services, energy, health, and agribusiness — want to accelerate their expansion and diversification plans to emerge even stronger from the crisis. Diagnostic companies Fleury and Dasa are a great example, expanding their operations...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.