Foreign investors reduce their share of M&A deals in Brazil

Folha reports that foreign investors' share of all mergers and acquisitions in Brazil fell from 46.6% in 2013 to 29.7% in 2023 (TTR Data), yet reached highs in deals above R$50 million: 47% of transactions and 58% of value (RGS Partners). Ricardo Jacomassi, partner at TCP Partners, explained that foreign investors seek sectors linked to external markets, such as commodities, mining, agribusiness, finance and technology, and rarely invest in companies with EBITDA below US$5 million, requiring aggressive scalability theses. The weaker real also pushes them toward larger deals.