Kroll Brazil has released its latest edition of the Brazil Transactions Insights – Summer 2025 report, offering a comprehensive analysis of the country’s M&A and capital markets performance during the first half of 2025.
M&A Activity Sees Modest Decline, but Strategic Buyers Remain Active
According to the report, Brazil recorded 633 M&A transactions in the first half of 2025, marking a 6.1% decreasecompared to the same period in 2024. Over the past twelve months, deal volume dropped slightly by 2.9%, continuing a trend of tempered activity in the transactional space.
Despite this deceleration, strategic buyers accounted for 68.9% of deals, while financial sponsors were involved in 31.1%—showing continued confidence among long-term investors. Brazilian entities participated in nearly 78% of the transactions, reaffirming strong domestic interest.
The most active sectors were software/IT, financial services, food & beverages, and energy. Notably, the top three sectors alone comprised 36.7% of all M&A deals. Looking ahead, sectors such as mining (including critical materials), renewables, environmental services, infrastructure, logistics, and water/sewage are expected to gain traction.
Capital Markets Remain Tepid, IPOs Absent Since 2022
Kroll’s report also highlights a quiet capital markets environment. No IPOs have been recorded in Brazil for the past 30 months, and the first half of 2025 saw only three follow-on offerings totaling BRL 3.5 billion (USD 0.7 billion).
Nevertheless, the Ibovespa index posted a positive performance, up 15.6% year-to-date, driven by gains in education, retail, and real estate sectors. Meanwhile, inflation remained contained at 2.7%, and the Brazilian Real appreciated by 12.1% against the U.S. dollar. However, the Central Bank raised the SELIC interest rate to 15.0%, impacting investor sentiment.
Dive deeper into the full Brazil Transactions Insights – Summer 2025 report by Kroll Brazil and explore detailed charts, sector highlights, and key deal announcements: Click here.
For more information, please contact:
Alexandre Pieratoni
Managing Director
Head of LatAm and Brazil Corporate Finance
alexandre.pierantoni@kroll.com
