IT and Internet lead mergers and acquisitions ranking

Of the 818 operations carried out, 123 were IT and 91 Internet

With 818 transactions carried out last year, the number of mergers and acquisitions recorded its best historical result, with one transaction more than those carried out in 2011, which held the record until then. The data are included in the mergers and acquisitions survey carried out quarterly by KPMG.
 
Comparing to 2013, the growth was 3%. “Despite the period of uncertainty in the Brazilian economy throughout 2014, the mergers and acquisitions market remained heated, especially in the segments of energy, food, beverage and tobacco companies and in the already traditional information technology and internet companies”, analyzes the KPMG partner responsible for the research, Luis Motta. TI and Internet recorded their records with 123 and 91 operations respectively.

CB1: Company with majority foreign capital acquiring, from Brazilians, capital of a company established in Brazil.
CB2: Company with majority Brazilian capital acquiring, from foreigners, capital of a company established abroad.
CB3: Company with majority Brazilian capital acquiring, from foreigners, capital of a company established in Brazil.
CB4: Company with majority foreign capital acquiring, from foreigners, capital of a company established in Brazil.
CB5: Company with majority foreign capital acquiring, from Brazilians, capital of a company established abroad.

International Business
 
During the last year, there were 399 transactions of foreigners buying here in Brazil, an increase of 10% compared to 2013. The survey also shows a greater search by Brazilian companies for internationalization. There were 44 companies with majority Brazilian capital acquiring, from foreigners, capital of a company established abroad, an increase of 20% compared to 2013, which registered 37 operations. Brazilian companies also increased negotiations by acquiring, from foreigners, capital in companies established in Brazil. There were 43 deals in 2014, against 37 the previous year.

“This search for the international market is probably aligned with the economic recovery process of developed countries, which reduces the risk of long-term investments in these countries, although it also increases the value of these companies due to the appreciation of their currencies against the Real”, analyzes Motta.

On the other hand, transactions involving only Brazilian capital companies registered a decline and the worst performance of the last five years, with 331 operations. “Many sectors in which domestic transactions were prominent, such as the Shopping Center segment, are already more consolidated, reducing the chances of operations. Another point that we have to highlight is that some investors may have chosen to wait for the results of the elections held in October, and thus reevaluate their investments in 2015”, concludes Motta.