In the past year, mergers and acquisitions (M&As) in Brazil amounted to US$ 43 billion (R$ 215 billion), marking a 27% decrease compared to 2022. Nevertheless, Brazil retained its top position in M&A transactions in Latin America, with 2,008 completed deals, constituting 62% of the total in the region. These insights come from a report by Aon, a British risk management and insurance brokerage company, in collaboration with TTR Data.

The study indicates that Chile secured the second spot in the operations ranking with 384 mergers and/or acquisitions, reflecting a 15% increase from 2022. Following closely is Mexico with 366 done deals, trailed by Colombia (264), Argentina (214), and Peru (40). Collectively, Latin American countries recorded 3,235 transactions last year, amounting to US$ 74 billion (R$ 368 billion).

Thiago Lang, Director of Industries, M&A & ESG at Aon, highlights that Brazil’s leadership in the number of transactions, even during a challenging period, underscores the country’s ongoing importance in the M&A landscape. Despite a 22% drop in annual operations, Brazil mobilized a capital of US$43.4 billion, showcasing the maturity and resilience of the Brazilian market.

The report singles out Natura&Co, the largest cosmetic holding in Brazil, as a prominent player in the Latin American M&A market for 2023. The company’s sale of the Australian luxury brand Aesop to the French cosmetics giant L’Oreal, valued at around US$ 2.4 billion (R$ 12 billion) at the time of the deal, contributed to this recognition.

In anticipation of the coming year, a Deloitte survey reveals the motivations behind new acquisitions. For 66% of acquiring companies, the transaction will be driven by an interest in purchasing a complementary business. Additionally, 62% point to expanding into new markets, and 58% cite the incorporation of new technologies. Furthermore, 38% will use the operation to adjust the portfolio of products and services, and 25% view the M&A process as an opportunity to change business strategy.

Leading the Way: Fintechs

Among startups in Brazil, Fintechs led the number of operations in the market, representing 23 out of the 146 deals closed last year. Following in the ranking are MarTechs (22) and HRTechs (12). These findings, from Distrito, are part of the M&A Deals Report 2023 by Questum, a company specializing in mergers and acquisitions and investments.

According to the study, the majority of transactions involved values ranging from US$ 4 million (R$20 million) to US$ 40 million (R$200 million).

Source: Capital Aberto - Brazil