Brazil 2010 M&A hits new record

Brazil is increasingly a participant in the mergers and acquisitions market. Along with China, the Latin American country led the emerging world to account for one-third of the global industry.

According to a survey by Thomson Reuters, in 2010, 693 transactions were announced, an annual growth of 37,5%. Size of the market jumped to U.S $ 120,6 billion, 76% bigger then the year before. 

These numbers  indicate that M&A industry in Brazil is getting serious.

Energy and Oil lead

Brazil is specially strong in energy (oil and ethanol) and metals, some of the most active segments in mergers in the world.

The energy sector led, with emphasis on the purchase of 40% of Repsol’s assets in Brazil by China’s Sinopec, and the creation of a joint venture that brings together some of the assets of Shell and Cosan. Raw materials and telephone were the second and third on the list, respectively.

Brazilian M&A activity in 2010 also draws attention to a profile change. We observe the participation of more sectors, with lower average value per transaction.

With the prospect of high economic growth in coming years, Brazil is poised to  remain one of the most active M&A markets in 2011.

 

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About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Bureau. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil. She lives between Paris and Rio and is a member of the Harvard Club of Paris and of the Mercosur Women’s Forum.
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