M&A Volume in Brazil Rises 40% in the First Half of the Year

(Valor Econômico) Increase in deal value driven by higher share of large-scale transactions, mainly in the energy and natural resources sectors By Helena Benfica, Valor — São Paulo

The volume of mergers and acquisitions (M&A) transactions in Brazil grew by 40% between January and June this year compared to the same period in 2024, reaching a total of USD 29 billion, according to data from M&A boutique Seneca Evercore. Despite the rise in total transaction value, the number of deals fell by 25% during the same period, from 432 to 322 transactions.

The increase in deal value is attributed to a greater share of large-scale operations, mainly concentrated in the energy and natural resources sectors, which include companies in power generation and distribution, oil and gas, pulp and paper, and mining. These segments typically involve larger deal values than the market average.

The study shows that while in 2020 these sectors accounted for around 10% of total M&A volume, in the first months of 2025 they represented 60% of the market. “One factor behind this shift is the more resilient nature of these sectors, which are less exposed to domestic market fluctuations and political and economic uncertainties in the country,” says Daniel Wainstein, founding partner at Seneca Evercore.

Among the most recent transactions are Actis’s acquisition of EDP Energias de Portugal for USD 524 million; Pontal Energy’s purchase of 52 Distributed Generation (DG) plants from Grupo Vip Air for approximately USD 131 million; and the sale of the Serra Grande mine by AngloGold Ashanti to Aura Minerals for USD 76 million.

According to the report, the second-largest sector in terms of transaction volume during the period was consumer and retail. This segment also gained market share, growing from 6% in 2024 to 20.5% by June this year. The standout deal was Suzano’s agreement to acquire a 51% stake in a global tissue joint venture with Kimberly-Clark for USD 1.73 billion.

In contrast, sectors such as transportation and logistics, technology, real estate, healthcare, and business services — which had greater relevance last year — lost ground in 2025. These sectors tend to be more affected by economic fluctuations, which may explain the slowdown.

Improved Macroeconomic Outlook

For the second half of the year, Seneca anticipates some improvement in the macroeconomic environment, which could support a new wave of M&A activity. “The resistance in Congress to the federal government's populist measures and the resulting budget constraints may bring some relief to the market, which has been dealing with a great deal of uncertainty,” says Wainstein.

Alongside infrastructure and alternative energy, the executive believes other sectors could also stand out in the coming months — particularly financial services, ranging from asset management to support services for institutions, including technology, “bank/broker as a service,” custody, and fiduciary administration.

Published in Valor Econômico on July 3, 2025, and available at: https://valor.globo.com/empresas/noticia/2025/07/03/volume-de-fusoes-e-aquisicoes-no-pais-avancou-40percent-no-1o-semestre.ghtml