Mergers and acquisitions increase by 31% in Brazil and reach the highest number in 5 years

The US leads as the country that invested the most in Brazil, with 34% of the total transactions

Business partners greeting each other after signing contract. Photo: Shutterstock

With better macroeconomic figures and reforms such as the one of social security going on in the country, the number of mergers and acquisitions reached its highest level in the last 5 years, pointing to an increase of investors’ confidence in the Brazilian economy. 

Led by PwC Brazil and provided by Brazilian media outlet Valor, the survey disclosed the peak of 614 transactions between January and September of this year, 31% more than in the same period of 2018. 

According to Leonardo Dell’Oso, head of Transaction Services and partner at PwC Brazil, besides the better macroeconomic indices, the slowdown in mature economies such as Japan and Germany, as well as the rise in privatizations are attracting the eyes of foreign investors. “The whole scenario is pulling Brazil’s economic grounds up and investors are seeing it. The decrease in the foreign market and good outlook [in Brazil] show that investment is here,” said the research leader.

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After the US, which led 34% of the total foreign operations in the period; Japan and Germany figure right behind, with 7 and 6%, respectively. The entry of foreign investment in the country has also increased from January to September, reaching the highest number in the span of 4 years. While in 2018, 157 deals were closed, in 2019, this number increased to as much as 189 transactions, a growth of 20,4%. “We believe this [2019] will be a year with a lot of foreign investment,” said Dell’Oso. 

For the future, the survey predicts continuous rise, betting on 900 mergers and acquisitions by the end of 2019 and as much as 1,000 transactions for 2020. 

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