Financier World Wide brings this week a deep analysis on 2011 prospects for M&A in the BRIC countries.I found it a good summary of M&A activity in Brazil, Russia, India and China.
My highlights from the original text
“While there will always be economic and legal hurdles to global M&A, as it stands the prospects for M&A in BRIC countries this year and onwards looks promising.China will continue to lead in both deal value and volume.
In Brazil, Selina Harrison remarks that “outbound M&A, things are looking up as both public and private banks become more open to support acquisitions in this area. The Brazilian Development Bank (BNDES) has a policy of fostering the acquisitions of foreign targets by Brazilian companies, in order to form Brazilian-based international players in sectors where the country has competitive advantages.”
Meanwhile for Brazil, there are a number of reasons why the market for M&A will be even more active through 2011 than in the past year. “Brazil is currently attracting attention from companies that aim to expand their activities to emerging markets and it is possible that in the near future Brazil could face even more foreign companies targeting national companies in order to capture their customers and suppliers. The recent wave of intense of consolidations between Latin-American corporations can also be seen as a catalyst for M&A transactions. Finally, the 2014 FIFA World Cup and 2016 Olympic Games will require additional foreign investment and provide extra demand for products and services in Brazil,” according to Luiz Gustavo Haddad a partner at Lilla, Huck, Otranto, Camargo Advogados.