Brazil recorded 411 mergers and acquisitions between January and May, including private equity and venture capital, with total value of 43.6bn reais (US$8.75bn).

The figures represent a 63% year-over-year decrease in value and a 28% reduction in the number of deals, according to M&A research firm Transactional Track Record (TTR).

The leading vertical continues to be technology, with 113 transactions, followed by financial/insurance and health, hygiene and aesthetics, with 49 transactions each.

However, foreign companies decreased investments in the tech sector by 35% as foreign private equity and VC funds reduced their investments by 50%.

But VC transactions increased by 14%.

Just in May, 69 announced and concluded mergers and acquisitions were registered for a total value of 1.6bn reais, TTR said.

PwC Brasil recorded 46 transactions in April, down 31% over April 2019, local daily Valor Econômico reported. Considering the health and economic crises, the figures were seen as positive. 

PwC also said that downward trend can be observed in several markets.

The number of deals is expected to rise in the second half because the crisis will leave many companies struggling, paving the way for capitalized and private equity companies seeking acquisition targets.

Main operations will be seen in segments most affected by the business shutdowns, such as food and tourism, but also in the health and insurance segments.

Source: Business News Americas / BN Americas - Chile