The Mergers and Acquisitions (M&A) market in Brazil in 2025 presents a scenario of contrasts. In the first quarter, there was a 3% drop in transaction volume and a 24% decline in capital mobilized (Aon/TTR Data). However, a shift is expected in the second half of the year, with sectors such as renewable energy, agribusiness, and infrastructure emerging as strategic bets for investors.
Current Landscape: Lower Volumes, Greater Asian Presence
As usual, Brazil led the number of M&A deals in Latin America during the first quarter, maintaining its position as the region’s largest economy. However, this year’s leadership came with smaller transaction values. Foreign investors, responsible for 85% of the total capital moved in 2025 (Seneca Evercore), are seeking opportunities with unique competitive advantages, such as logistics (ports, railways) and renewable energy.
It’s not just foreign investors standing out — it’s East Asian investors in particular. Notable examples include the US$ 1.7 billion acquisition of Vast Infraestrutura (Prumo) by China Merchants Port (CMP) and the entry of Singapore’s sovereign wealth fund (GIC) into Cimed.
Second-Half Trends: Infrastructure & Agribusiness
Transmission and generation auctions could inject up to R$ 57 billion into the energy sector (EPE), with participation from major players such as Eletrobras, Eneva, and CPFL. Similarly, the solar photovoltaic segment recorded a 25% increase in transactions in Q1 (Greener), driven by large-scale plants and energy storage solutions.
In agribusiness, moves such as Bunge’s investment in Belagrícola and JBS’s acquisition of Mantiqueira (valued at R$ 1.9 billion) reflect the pursuit of scale and innovation. Biotech and agri-fintech startups are expected to attract capital, despite high financing costs.
It’s also worth noting that private equity (PE) funds are overloaded — 49% of companies globally have been held since 2020 (PwC). The same applies in Brazil, where more divestments of mature assets, particularly in healthcare and education, are expected.
Two Sides of the Coin – Challenges and Opportunities
A high Selic rate (14.25%) raises credit costs and widens the valuation gap between buyers and sellers. Geopolitical uncertainties, such as protectionist measures and upcoming elections, could delay decisions. Postponements of auctions and concessions, such as the 2024 Capacity Reserve Auction, highlight the need for legal certainty.
On the other hand, Brazilian agribusiness continues to show strong global potential. The U.S.–China trade war has opened new opportunities for Brazil to expand meat and grain exports. Japan, for instance, is negotiating to buy Brazilian beef, and China has increased its soy imports from Brazil. These developments could trigger new M&A movements in Brazil, particularly involving companies from the main export destination countries.
How to Position Yourself
Trust Insight connects you with experts to:
Identify resilient sectors (e.g., clean energy, logistics, agribusiness);
Anticipate regulatory risks in cross-border operations;
Structure transactions using alternative models (e.g., private credit, earn-outs).
Want to know more? Start a project with us and access our expert network.
[Sources: Aon/TTR Data, PwC Global M&A Trends 2025, Valor Econômico, Canal Solar, Greener, Bloomberg Línea]