New companies on the stock exchange are targeted by competitors in mergers and acquisitions

(Valor Econômico) Weak performance of company shares helps drive deal conclusion

Companies that went public between 2020 and 2021, in the last window for initial public offerings (IPOs) in the Brazilian market, are stepping up their merger efforts with rivals this year to strengthen their businesses. In addition to the search for synergies and value gains in a difficult macroeconomic environment, the declining share prices of some companies that went public during this period have also driven a series of transactions.

Retail has been leading the way in consolidations and important transactions have been announced this year. And this has not always occurred under the influence of falling stock values, but mainly due to the search for synergies in an increasingly competitive environment.

The most recent case is that of Mobly, listed since May 2021, which merged with its competitor Tok&Stok, which is undergoing a financial restructuring. Last April, Cobasi combined its business with Petz - Sérgio Zimerman's company made an initial public offering in September 2020. Competitors Arezzo and Soma also merged their brands, creating a fashion giant.

Published in Valor Econômico on 08/16 https://valor.globo.com/empresas/noticia/2024/08/16/empresas-novatas-na-bolsa-sao-alvo-de-concorrentes-em-fusoes-e-aquisicoes.ghtml