BRAZIL Trends and Developments Contributed by: Diana Henne, Machado Meyer
Introduction In 2024, Brazil experienced a moderate increase in M&A activity, with 1,877 announced transactions, rep - resenting a 7% year-on-year increase, according to TTR Data Blog issued on 9 January 2026. Aggregate disclosed deal value reached approximately BRL313.5 billion, although the overall figure is likely higher given the existence of undisclosed transaction values due to confidentiality reasons. Although domestic transactions represented most of the deals, cross-border activity remained a signifi - cant component of the Brazilian M&A landscape. The United States, the United Kingdom, Spain, France and Canada led the cross-border investments, participat - ing in 162, 33, 29, 28 and 27 transactions, respec - tively. Cross-border deals accounted for 29.57% of total M&A activity, corresponding to 555 transactions. Notably, while China participated in a smaller number of transactions, the aggregate value of its investments ranked among the highest for inbound deals. Private equity activity also showed resilience, with 119 transactions totalling BRL56.8 billion, reflecting an 11% increase in volume when compared with the previous year. In parallel, the continued absence of IPO activity – with no Brazilian company having com - pleted a public offering since December 2021 – has reinforced M&A as a primary liquidity and exit route for investors. This article provides a brief overview of key trends shaping the Brazilian M&A market in 2026, including geopolitical, economic and market conditions, main sectors, and selected legal and transactional consid - erations. Geopolitical, Economic and Market Conditions M&A activity in Brazil remains closely correlated with macroeconomic and political conditions, as well as global geopolitical developments. Interest rates, infla - tion, exchange rate volatility and GDP growth continue to influence investors’ decisions, access to financing, and valuation dynamics. Favourable economic con - ditions tend to result in higher levels of deal activity, while periods of volatility or high borrowing costs may reduce the number of deals and delay transactions.
Brazil’s economic growth has moderated in recent years, with GDP expanding by 3.4% in 2024 and 2.3% in 2025, the fifth consecutive year of expansion. Brazil’s inflation rate decreased to 4.26% in 2025, its lowest level since 2018. Despite of the inflation rate reduction, the Brazilian Central Bank has maintained a restrictive monetary policy stance, keeping interest rates above the target range. While elevated borrow - ing costs and cost of capital have constrained deal activity in the short term, expectations of a reduction of the interest rate and structural reforms may support a gradual recovery in M&A volumes. In this environment, deal structures have increasingly incorporated mechanisms aimed at bridging valua - tion gaps and mitigating risk allocation concerns. Earn-outs, deferred consideration and other contin - gent pricing arrangements have become more preva - lent, particularly in transactions involving uncertain - ties about future performance, synergies or complex operational or technological integration. Additionally, 2026 is expected to present atypical dynamics due to the Brazilian presidential elections and the FIFA World Cup. Election years are marked by a higher level of uncertainty and, consequently, a reduction in the volume of transactions. Investors tend to prefer to wait for the choice of the new president before taking important decisions and making signifi - cant acquisitions. Main Sectors The most active sectors in 2025 include: • Internet, software and IT services: Continued demand for digital transformation and the integra - tion of generative AI solutions has driven sustained M&A activity in the technology sector. • Fintech: This sector has seen both consolidation and strategic acquisitions, with fintech companies acting as both targets and acquirers, particularly in pursuit of an expanded customer base and acqui - sition of new technology. • Edtech: Growth has been supported by increasing demand for digital education platforms and con - tinued investment in scalable technology-driven solutions.
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