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Brazil Emerges as a Global M&A Hotspot Amid the Return of Billion-Dollar Deals

The first half of 2026 is asserting itself as one of the most significant periods for global mergers and acquisitions activity since the 2021 peak. 2026 deal volume is expected to reach USD 4 trillion this year.

The M&A markets in Brazil and the United States converge, in the first half of 2026, around a shared structural dynamic: a pronounced preference for larger transactions, with well-capitalized strategic buyers driving overall deal value even as the total number of completed operations contracts or stabilizes. This pattern reflects a growing selectivity among market participants and the disproportionate weight of megadeals that, individually, account for substantial shares of capital deployed within a single month — a defining characteristic of the current cycle in both geographies.

In Brazil, the data from the opening months of 2026 confirms a qualitative recovery that is gathering considerable momentum. The first quarter delivered the strongest performance for that period since 2021, with USD 15.9 billion in transacted value — a 30% increase over Q1 2025 — notwithstanding a reduction in the number of completed operations from 198 to 153 transactions. This divergence between value growth and deal-count contraction is not a sign of weakness; it is, rather, an unambiguous signal of concentration in larger, more sophisticated transactions. For the full year 2025, total Brazilian M&A reached USD 58.4 billion, with volume and capital deployed expanding by 5% and 6%, respectively, compared to 2024, according to EMIS M&A.

A granular reading of the monthly M&A activity in Brazil reveals a disclosed-value volatility profile that is characteristic of markets still navigating the aftermath of a high-interest rate cycle. December 2025 and November 2025 stand out as the months of greatest capital intensity in the second half of the year — USD 6.2 billion and USD 7.9 billion, respectively — underpinned by an acceleration of closings ahead of the 2026 electoral period, which market participants widely expect to introduce valuation uncertainty and multiple compression in the second half. In the opening three months of 2026, the pace of activity, while below the May 2025 spike, remains robust and broadly consistent with the widely held expectation that the first half of the year will prove the most active since 2021.

Among the transactions recorded in the Brazilian market during the early months of 2026, the acquisition of a minority stake in Global Eggs by US-based private equity fund Warburg Pincus, valued at USD 1 billion, stands out not merely on account of its size, making it the single largest individual operation in the period under analysis, but above all for the strategic message it conveys to the global capital markets community regarding the attractiveness and maturity of Brazilian agribusiness as an asset class. The investment also signals a materially promising perception among foreign capital allocators regarding the agricultural commodity cycle and the enduring competitive advantages of Brazilian agribusiness within the context of a reconfiguring global food supply chain. International investors are looking for Brazil and its competitive advantages in 2026.

Other largest transactions in the period exposes, with considerable clarity, the forces shaping the Brazilian M&A market. The sectoral diversity on display — spanning agribusiness, pharmaceuticals, telecommunications, oil & gas, and technology — reflects the breadth of the consolidation wave in progress, encompassing traditional sectors of the real economy alongside more technology-intensive segments. Taken together, the five largest deals represent aggregate disclosed value in excess of USD 2.6 billion, a figure that underscores the growing ticket size characterizing Brazilian M&A in the current cycle. Transactions like EMS acquisition of Sanofi Medley (acquiring 100% of the business for USD 600 million), Chinalco/Rio Tinto consortium’s acquisition of Companhia Brasileira de Aluminio (CBA), valued at USD 1.9 billion, deserves particular attention. Transactions in mining/ rare earths and data centers will continue to attract interest.

Looking broader and from an overall sectorial perspective, technology retains an unassailable lead in deal activity (AI is reshaping not only the technology industry but all others). The healthcare sector remains one of the most dynamic in Brazil, with healthtechs, health insurance plans, and hospital network consolidation at the center of activity – the combination of Odontoprev and Bradesco Saude, valued at USD 5.8 billion, represents the highest-value deal in Q1 2026. Energy and infrastructure also feature as expected growth vectors for the second half of 2026, supported by Brazil’s renewable energy matrix and long-term energy transition policy commitments. And, finally, Telecom and Digital Infrastructure (with highlights to Data Centers and its energy demand) transactions will be emblematic during the course of next years.

As from an international investors’ perspective, China has boosted its investments and M&A activity in the country, reaching more than USD 6 billion in 2025 – a 45% growth over 2024. Brazil leads the participation of China foreign investment with circa 10%. Diversification for a presence in multiples was a driver, with mining and energy representing, each one, one third of China’s investment in the country – other relevant sectors are industrials in general and technology. US continues to be a relevant player and the present of strategic, as well as financial investors is likely to improve over the year. Germany, fourth largest investor in Brazil trade partner has also recorded its investment levels in the country.

Finally, we can understand first half of 2026 is likely to be a very active period, with big tickets transactions – albeit a relevant decrease in number of deals is expected for the year.  Activity is being accelerated ahead of the electoral cycle. The special situation/ distressed market remains active and is expected to attract opportunistic allocations from dedicated private equity strategies.

About the author

Alexandre Pierantoni
Kroll Managing Director/ Head of Brazil and LatAm Investment Banking alexandre.pierantoni@kroll.com

Alexandre Pierantoni is Managing Director and Head of Latin America and Brazil Corporate Finance at Kroll, based in São Paulo. His career began at PwC in 1992, where he became a partner in 2007 before joining a local M&A boutique in 2014 and moving to Kroll in 2017.

With more than 30 years of experience, he specializes in M&A, corporate finance, valuations, and strategic advisory, with deep expertise across the consumer, industrial, IT, healthcare, and education sectors.

Throughout his career, Alexandre has led buy- and sell-side transactions for strategic and financial investors across Brazil and Latin America, advising large local and multinational companies on acquisitions, divestitures, and corporate development mandates.

His academic background includes degrees in business administration and economics, an MBA in Finance from FGV-EAESP, and executive programs at Kellogg, MIT, the New York Institute of Finance, and FGV.