Brazil's 2025 M&A deals set to remain below 2021 record, PwC report shows
The volume of merger and acquisition (M&A) deals in Brazil this year is set to remain below the record levels seen during the COVID-19 pandemic, data released by consultancy group PwC showed on Friday.
WHY IT'S IMPORTANT
The slower M&A activity in Latin America's largest economy reflects a challenging environment and suggests a more cautious approach by investors. The shift in buyer demographics, with domestic investors taking a larger share, also indicates changing dynamics in the landscape.
BY THE NUMBERS
Brazil has accounted for 1,087 M&A deals this year as of end-September, a 9.5% drop from 1,201 transactions in the same period of 2022, which was a record for the first nine months of a year. The annual record is 1,659 deals closed in 2021.
Domestic buyers have dominated the market in 2025, accounting for 884 transactions, while international companies participated in 203 deals. In 2015, the market was almost evenly split between them.
CONTEXT
The peak in M&A activity in 2021 coincided with lower interest rates in Brazil, with the benchmark Selic rate reaching 2% at the beginning of that year, well below the current level of 15%, a nearly two-decade high.
The current slowdown also reflects a broader shift in the market, as domestic companies are increasingly driving M&A activity.
WHAT'S NEXT
Chinese investors' activity, which has been notable in Brazil in recent years, showed modest involvement with only five M&A deals this year so far, while U.S. firms participated in 70 transactions. This suggests potential room for increased participation by Chinese investors in future deals.
