Carnival time for M&A in Brazil

Wilson - "an exciting time to be investigating Brazil"

Inbound mergers and acquisitions (M&A) have doubled in Brazil since 2009 according to a new research report from Catalyst Corporate Finance.

Having overtaken the UK in 2011, Brazil is now the sixth largest economy in the world and the largest in South America. Although third quarter figures show a slowdown in growth it is expected that the long term trend will see increased inbound M&A when global confidence returns, especially by UK companies.

Since January 2010, UK companies have invested $5.1 billion in Brazil through M&A. FTSE 100 companies have been at the forefront of this trend, leading the charge to establish a foothold in the country. The report predicts that this strategy will be increasingly adopted as more companies seek international growth outside the traditional European and North American markets.

"WPP, Accenture and other major international corporates are now routinely searching for acquisitions in Brazil", commented Leonardo Artunes, Managing Director at BroadSpan Capital, Catalyst’s partner firm in Brazil.

Catalyst partner Mark Wilson, author of the report said, "PLCs have been taking advantage of the growth in Brazil whereas the mid-market has been very quiet when looking at the M&A figures. This is a very exciting time to be involved in a country whose economy is growing rapidly and is experiencing a massive expansion in consumer spending power. The 2014 World Cup and 2016 Olympic Games will also give rise further investment opportunities."

Catalyst's new research can be downloaded here

For information on Catalyst's Brazil desk, operated in partnership with BroadSpan Capital, contact Mark Wilson at markwilson@catalystcf.co.uk.