São Paulo – A survey released this Friday (8th) by the consulting and auditing firm KPMG shows that 406 merger and acquisition (M&A) operations took place in Brazil in H1 2014, up 5% from H1 last year. It was the second strongest half-year result since 1994, the first being H1 2012.
Industries with the highest number of operations were information technology (54), internet companies (43), energy companies (27), services to companies (24), food, beverages and tobacco (21), telecom and media (16) and financial institutions (16).
Domestic transactions, i.e. those conducted between Brazilian-owned companies, accounted for the bulk of operations, followed by foreigners acquiring stakes in local companies from Brazilians. Other categories of international transactions accounted for the remainder of M&As.
“Despite the lower growth expectancy in the country, the merger and acquisition market keeps showing its strength and proving that this type of operation remains one of the most widely employed strategies for business expansion,” said KPMG partner Luis Motta, according to a press release from the consulting firm. “It is also important to note that the current scenario notwithstanding, foreign companies still see opportunities in acquiring businesses in Brazil,” he added. In H1 this year, 192 operations took place in Brazil, as against 159 in H1 last year.
*Translated by Gabriel Pomerancblum