Chinese companies lead in mergers and acquisitions in Brazil since the beginning of the year

25 April 2017

The value of mergers and acquisitions by Chinese companies in Brazil since the beginning of the year until 17 April totals US$5.67 billion, according to the Dealogic consultancy, quoted by Brazilian newspaper Valor Economico.

Acquisitions by Chinese companies in this three and half-month period accounted for 37.5% of the total, remaining just ahead of similar transactions involving Brazilian capital, which amounted to US$4.23 billion or 28% of the total.

Among the foreign countries involved in mergers and acquisitions in Brazil, after China come Argentina and the Netherlands, with values of US$1.6 billion (10.5%) and US$1.1 billion (7.2%), respectively.

The London-based consultancy said the value of Chinese acquisitions to 17 April was almost half the amount for the whole of 2016, when it reached US$11 .92 billion, more than double the amount recorded in 2015 with US$4.9 billion.

China also led mergers and acquisitions involving foreign companies in 2016, “virtually tied with Brazilian companies in this process in Brazil” and nearly doubled the capital invested by US companies.

Valor Economico said that the increase in mergers and acquisitions is occurring alongside the increase in Brazil’s surplus in trade with China, which rose from US$1 billion in the first quarter of 2016 to US$5.5 billion in the same period of 2017, according to the Ministry of Industry, Foreign Trade and Services. (macauhub)