Mergers and acquisitions up 26% and move R $ 121.4bn through September, says Anbima

Mergers and acquisitions grew 26% in September compared to the same period last year, totaling R $ 121.4 billion, according to statistics from the Brazilian Association of Financial and Capital Markets Entities (Anbima). In the number of operations, however, the outlook is the opposite, with 68 transactions carried out this year, against 99 from January to September 2017.

“The volume growth reflects the large operations carried out during the year, in addition to the increase in the amount generated by the acquisitions of Brazilian companies by foreign companies,” said Dimas Megna, coordinator of the subcommittee on Mergers and Acquisitions of Anbima, in a note distributed by the association. In 2018, purchases of Brazilian companies by foreign companies reached R $ 54.6 billion, representing a growth of 23% compared to the volume raised in nine months of 2017. Transactions involving only local companies totaled R $ 60.3 billion in the period, equivalent to 49.7% of the total.

The pulp and paper sectors (with a 39.3% share of all businesses), IT and telecommunications (15.5%) and food and beverages (12.7%) accounted for 67.5% of volume traded up to September . Together, these segments accounted for only seven operations in the period.

Among the business purposes, control acquisitions accounted for 52.7% of the total volume of 2018, from 52 operations, according to Anbima. One merger accounted for 39.3% of the period, while mergers and acquisitions to purchase minority interests and the joint venture accounted for 4.2% and 3.8%, respectively.

Source: ECONOMIA