Brazil M&A activity shows shift toward higher-value deals

Mergers and acquisitions (M&A) activity in Brazil is showing divergent trends across different sectors and metrics. In the energy sector, KPMG reported a 30.3% decline in the number of transactions during the first half of the year compared to the same period in 2025. While total deal value fell to over R$ 20 billion from R$ 26 billion, specific segments like transmission lines and Energy Tech saw significant growth, even as traditional generation and bioenergy slowed.

Broadly across the market, while the total number of transactions through August was 32% lower than the previous year, the total financial volume of deals actually increased by 11%. Legal experts from Madrona suggest this indicates a trend toward higher-value, more selective deals. This market movement appears largely unaffected by political uncertainty surrounding upcoming elections, with activity concentrated in technology, banking, real estate, and professional services.