In 2023, Brazilian companies experienced a surge in foreign investment, with M&A deals involving 47% foreign participation, a decade high.
This rate has steadily grown from 20% in 2020 to 43% in 2022, reaching 58% of the investment value in 2023.
Brazil’s market appeal grew due to global economic shifts, attracting more international investors, according to RGS Partners’ Fábio Jamra.
High-profile acquisitions included L’Oreal’s purchase of Aesop (Natura) and Glencore’s acquisition of Mineração Rio do Norte.
The technology sector saw significant investments, with General Atlantic’s R$1 billion in QI Tech standing out as 2023’s largest startup investment in Brazil.
This investment spree led to notable acquisitions like Singulare by QI Tech.
Sinqia’s R$2.5 billion sale to Evertec, resulting in its delisting from B3, aimed to bolster Evertec’s Brazilian presence.
Despite the rise in foreign M&A activity, Brazil‘s total M&A transactions dropped by 13% in 2023, with 507 deals by foreign firms, according to a KPMG report.
The U.S., U.K., and Germany were top investors in Brazil. KPMG’s Marco Almeida attributes the overall M&A decline to a venture capital market downturn.
Political and economic uncertainties have deterred local investment, notes Daniel Rodrigues Alves from Cândido Martins.
However, as Brazil’s market begins to open, a rebound in domestic transactions compared to foreign investments is anticipated.
The American crisis also tightened credit, challenging acquisition financing in Brazil.