M&A Records Strongest Quarter Since 2021 and Attracts Foreign Investors
- Seneca Evercore News
- Apr 8
- 3 min read
(Valor Econômico) The combination of Odontoprev and Bradesco Saúde, as well as the sale of Companhia Brasileira de Alumínio (CBA) to Chinalco and Rio Tinto, were the two largest deals.
The Brazilian mergers and acquisitions (M&A) market closed the first quarter of 2026 on a recovery path, driven by large transactions and a rush by companies to close deals ahead of the election period. A survey conducted by Seneca Evercore shows that, between January and March, transactions totaled US$15.9 billion (approximately R$82 billion at the current exchange rate), up 30% year-over-year—the best result for the period since 2021.
However, this growth was concentrated in fewer transactions: 153 deals in the quarter, compared to 198 a year earlier, indicating that the market has been driven by larger-ticket deals. Two transactions accounted for a significant share of the total volume: the combination of Odontoprev and Bradesco Saúde, estimated at US$5.8 billion, and the US$1.9 billion sale of Companhia Brasileira de Alumínio (CBA), previously owned by the Votorantim group, to China’s Chinalco and Anglo-Australian Rio Tinto.
According to Daniel Wainstein, partner at Seneca Evercore, this trend reflects a rebound in M&A activity following two weaker years. “Many transactions that had been put on hold last year resumed at the start of this year.”
He adds that companies and investors are seeking to take advantage of a more predictable environment in the first half of the year to complete transactions before a potentially more unstable scenario in the second half, due to the presidential elections. In 2025, total M&A activity reached US$58.4 billion.
Political uncertainty remains a key constraint for dealmaking. “What the market needs is less uncertainty. As polls begin to define a clearer scenario, it becomes easier to price assets, as volatility declines,” he says. The expectation is that, with greater clarity around the elections, negotiations will move forward more smoothly.
At the same time, there are signs of improving foreign appetite. International investors—especially from the United States—have renewed their focus on Brazil. “With China currently outside the U.S. strategic map and India already saturated with investments, Brazil becomes the main ‘third way’ among large-scale emerging markets,” he notes.
This interest has been concentrated in sectors such as financial services, renewable energy, and technology. In financial services, a structural shift is underway, with the rise of independent platforms in areas such as wealth management, insurance, and credit. “There is a true revolution in the sector,” he says, noting that this creates opportunities both for new investments and for consolidation among smaller players.
The credit environment has also supported this trend. Brazilian companies have been extending their debt profiles, replacing short-term bank loans with longer-term capital markets funding. According to Wainstein, this shift reduces pressure on cash flow from investment plans, thereby creating value for shareholders.
With more investors active in the market, companies with stronger capital structures have been taking advantage of opportunities to consolidate fragmented sectors. “The ability to finance through long-term instruments changes the game significantly,” he adds.
By sector, technology led transaction volume in the quarter with 18%, followed by consumer and retail at 15%, and financial institutions at 14%. In addition to the major deals in healthcare and mining, the report highlights transactions in telecommunications, involving IHS Towers and Desktop, and in energy, including Wilson Sons and Petrobras assets.
The outlook is for momentum to continue into the second quarter. “The trend is for continued recovery compared to 2024 and 2025,” says Wainstein. Expectations of lower long-term interest rates remain a key driver, particularly for companies that rely more on growth than on heavy capital expenditures, such as those in technology and education.
Published on 04/08/2026 and available at:
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