Business

Mergers and acquisitions have the best result in five years in Brazil

These operations grow 26% in the first semester of 2019, according to PwC data

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  • Information technology–with a growth of 76%–and public services–whose operations doubled in comparison with 2018–were the two sectors that generated the most mergers and acquisitions in the country;
  • Brazil could close the year with 700 transactions of this type.

The mergers and acquisitions of enterprises in Brazil increased 26% in the first semester of the year, in comparison with the same period in 2018, as suggested by the PwC. These numbers are the best results in five years and have surprised analysts.

Information technology–with a growth of 76%–and public services–whose operations doubled in comparison with 2018–were the two sectors that generated the most mergers and acquisitions in the country. Together, they were responsible for two of every five transactions, which were concentrated in the regions of the South and Southeast of Brazil.

To the Gazeta do Povo newspaper, the partner and consultant of the company Leonardo Dall’Oso, said that in the case of the IT sector, there is a trend toward consolidating and optimizing the processes behind operations.

According to the results of the survey, the largest volume of operations was produced by Brazilian enterprises. Those operations that involved enterprises outside of Brazil were responsible for 11 of the operations, an increase of 9% in this second semester of 2019 in comparison with the same period of last year–although, in this regard, these are still the worst results of the survey since 2010.

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“While Brazilians bet on the recovery of economic activity, foreigners are waiting to see if the changes are actually put into effect before investing,” explained the partner of PwC to the Gazeta do Povo.

If everything goes as planned–that is, if  the Social Reform does indeed pass in Congress and the country’s economy changes gears–the survey concludes that this year could be the best for mergers and acquisitions in the country since 2015. Brazil could close the year with 700 transactions of this type.