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.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.82%
172,744.02
+0.82%
71,905.78
+0.05%
10,633.18
+0.34%
2,848,945
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2,528.01
-1.88%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,744.02 | +0.82% | +9.54% | 171,336.99 | 172,809 | 171,335 | — |
| USD/BRL | 5.56 | -0.42% | +5.15% | 5.58 | 5.59 | 5.55 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 43.66 | -2.87% | +31.42% | 44.95 | 44.17 | 43.60 | 10,632,300 |
| VALE3 | 65.19 | +0.60% | +0.35% | 64.80 | 65.47 | 64.98 | 930,400 |
| ITUB4 | 41.85 | +1.58% | +4.52% | 41.20 | 41.90 | 41.55 | 938,200 |
| BBDC4 | 14.76 | +1.51% | -24.42% | 14.54 | 14.81 | 14.61 | 2,866,300 |
| BBAS3 | 17.21 | +0.64% | -26.76% | 17.10 | 17.31 | 17.13 | 3,630,500 |
| B3SA3 | 14.82 | +2.35% | +9.46% | 14.48 | 14.92 | 14.59 | 3,059,100 |
| ABEV3 | 15.82 | +0.19% | +16.41% | 15.79 | 15.88 | 15.78 | 1,704,400 |
| WEGE3 | 51.37 | +0.82% | +11.62% | 50.95 | 51.53 | 50.95 | 583,700 |
| PRIO3 | 61.56 | +2.57% | +52.83% | 60.02 | 61.83 | 60.50 | 9,548,200 |
| SUZB3 | 54.35 | -0.20% | +16.93% | 54.46 | 54.59 | 54.07 | 425,700 |
| RENT3 | 30.28 | +1.64% | -29.99% | 29.79 | 30.30 | 29.93 | 949,300 |
| AZZA3 | 15.10 | +2.51% | -47.48% | 14.73 | 15.14 | 14.74 | 315,000 |
| CSNA3 | 4.45 | +1.60% | -46.45% | 4.38 | 4.47 | 4.40 | 952,700 |
| GGBR4 | 25.68 | -0.58% | +35.93% | 25.83 | 25.81 | 25.44 | 400,400 |
| ENEV3 | 27.40 | +1.29% | +41.99% | 27.05 | 27.40 | 27.05 | 118,300 |
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