Brazil

Brazil - August 2014

August 2014

Pages: 20

Format: .PDF

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In August, the Brazilian transactional market registered 76 deals, both announced and closed, compared with 83 recorded in the same period last year. The total investment volume generated was approximately BRL 31,51bn, taking into account deals with registered values. So far this year, the number of deals involving Brazilian companies was 504, with and investment volume of approximately BRL 131,88bn, which is superior to the amount generated in the twelve months of 2013.

The transactions involving private equity and venture capital firms represent 13% and 15%, respectively, of the total number of deals this month. The investment volume generated by private equity firms was approximately BRL 745,40m, while the venture capital firms generated BRL 90,50m, taking into account deals with registered values.

Regarding acquisitions carried out by foreign companies in Brazil, US-based acquirers were the most acquisitive, with six deals registered in the automotive, financial and insurance, mining, chemical, telecoms and consulting segments. French companies were the second most active acquirers in Brazil, with two acquisitions in the food and pharmaceutical subsectors.

The Internet subsector was the most active in the transactional market, with 11 deals registered this month. From January to August 2014, the Internet companies attracted most foreign investments in Brazil, a total of 21 deals were registered. Highlights include acquisitions carried out by US-based companies, with approximately 44% of the total number of deals.

TTR highlighted this month the sale made by pela Vale - Companhia Vale do Rio Doce of a 26,5% stake in VLI - Valor da Logística Integrada, to Brookfield Brasil, a subsidiary of Brookfield Asset Management. This transaction was announced in December 2013 and completed in August 2014. The deal value was BRL 2,00bn.