Market roundup: Brazil’s M&A volume cools off

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Brazil’s M&A market is in a slump

Despite high benchmark interest rates and increased investor caution in times of economic unrest, 2022 looked to be primed for a spree of mergers and acquisitions in Brazil. But there was an election in the way.

State of Play. Consultancy firm PwC tabulated a total of 1,425 deals announced between January and November 2022, 5.2 percent fewer than the same period the year prior, which currently holds Brazil’s M&A record.

By the numbers. Just over half of deals (686) were acquisitions per se (companies and funds buying the control of other companies). Another half (659) were buy-ins (which PwC classifies as companies buying stakes in others), and 80 were mergers.

Why it matters. 2021 was also a record year for initial and follow-on stock offerings, which put several publicly traded companies in a position to buy. These organizations, as well as the funds, are well-capitalized and willing to keep investing in Brazil.

Yes, but … They’re in wait-and-see mode, says Leonardo Dell’Oso, partner and deals...

Fabiane Ziolla Menezes and Ana Ferraz

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.