São Paulo – A survey released this Friday (12th) by KPMG shows that the number of mergers and acquisitions (M&A) was down 15% in quarter two this year from quarter two 2012. According to the consulting firm, the decline owes itself to the less favourable economic scenario and the country’s lower growth expectation. From April through June, 194 mergers and acquisitions took place in Brazil, as against 229 in the same period of 2012.<\/p>\n
In the first half, M&A activity was also down 11% at 386, as against 433 in the first half of 2012. Most transactions involved Brazilian companies (184), and 39 consisted of Brazilian companies acquiring units abroad. The remaining 163 operations concerned foreigners doing business in Brazil. According to KPMG partner and survey coordinator Luís Motta, the figures attest to a reduction in foreign appetite for Brazil. <\/p>\n
During quarter two, M&As between Brazilian companies also prevailed, having accounted for 98 of operations. Foreigners were involved in 84 acquisitions in Brazil, and 12 Brazilian companies acquired businesses in foreign countries. “Investors are more cautious, especially due to the fact that Brazil’s growth expectancy has declined over the past few months, and the implicit risk in these types of transactions is going up,” Motta explained according to a KPMG communiqué.<\/p>\n
According to KPMG, in quarter two, the sectors that saw the most M&A activity were information technology, oil and gas, foodstuffs, beverage and tobacco, internet companies and service providers. The technology industry, according to the consulting firm, has been on the spotlight for the past few years due to a high business volume.<\/p>\n
Despite the bearish scenario, Motta said the trend is one of stability.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n