Brazil Transactions Insights

M&A Activity in Brazil in 2022 reached a volume of 1.543* transactions (based on Kroll market research), representing a 5.2% decrease compared to the same period in 2021. The sectors with the highest representation are technology, financial institutions, and energy. The decrease is due to conservatism, also, cash preservation returned to the main agenda of investors, in a context of greater investments selection with the basic interest rate in Brazil of 13.75% – and without a reduction bias in the medium term.

As IPOs (0) and follow-ons (17) have decreased offers in 2022, M&A activity has taken advantage of this scenario and should remain strong, but with significant challenges from the political scenario.

Listed Brazilian Companies

As of December 10, 2022, there were 336 Brazilian companies listed on B3. With recent new listings (at a record level in 2021), the exchange experienced considerable sector diversification. The consumer durables and apparel sector accounts for the highest number of companies (41 companies), but only 1.8% of the total market capitalization. Utilities (38 companies) account for 13.3% of the total market capitalization, followed by materials (29 companies), accounting for 15.8%.

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By

Alexandre Pierantoni
Managing Director
Head of Brazil Corporate Finance
Sao Paulo
+55 11 3192 8103
+55 11 9 5500 8151
alexandre.pierantoni@kroll.com

And

José Thompson
Director
Sao Paulo
+55 11 3192 8108
+55 11 9 8689 4026
jose.thompson@kroll.com

Via Kroll