The volume of M&A transactions in Brazil is expected to expand in 2025 as the impacts of the start of a cycle of interest rate reductions in the US begin to take hold locally. 

In the first quarter, the number of M&A transactions announced in the country reached 376, down 22% year-on-year, while the announced financial value of the deals totaled US$8.06bn, a 2% reduction, according to a study carried out by international insurance and reinsurance broker AON with data from TTR Data.

Brazil accounted for more than half of the 603 M&A operations reported in Latin America in the first quarter.

Pedro da Costa, M&A and private equity transaction solutions leader at the Brazilian unit of AON, talks with BNamericas about the local outlook for M&As.

BNamericas: What is the outlook for M&A operations in Brazil in the coming months?

Costa: In Brazil, we will probably see stabilization in the number of M&As in the coming months, with the number of deals in the coming quarters similar to what we saw in the first quarter of this year.

There are important points to be taken into consideration regarding the mergers and acquisitions market, which is related to international economic behavior.

We have already started to see positive signs regarding an approaching reduction in interest rates in the US, and when this actually happens, it will have an impact on everyone. Any move to reduce interest rates in the US improves the M&A scenario and also for IPOs.

So, from my point of view, this year I see a scenario of stable M&A numbers over the next few months, but with a positive tendency. 

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Source: Business News Americas / BN Americas - Chile