Mergers and acquisitions break record with 707 operations in the year
Folha de S. Paulo
The mergers and acquisitions broke an all-time record this year, according to a study of KPMG. Altogether, there were 707 mergers and acquisitions until December 20 - more than the 454 registered in 2009, and to the record of 699 operations in 2007. The most important operations took place in the retail, agribusiness and the sector of fuels, according to KPMG.
According to Luis Motta, partner of KPMG responsible for the survey, the key factor for the performance was the appetite of the foreign companies for acquisitions in Brazil. "We are in the international route of consolidation. The main engine is the business opportunity in Brazil". Acquisitions led by Brazilian companies abroad grew 46%.
Despite the growth of the operations involving foreign companies, the mergers and acquisitions in the last quarter of the year continued being led by local businesses. Between October and December, the local companies were in 56% of the 176 operations. Compared to the last quarter, there was a slight fall of 3% in the domestic operations, with 99 agreements, compared to 102 from July to September. As regards the transactions of national companies buying companies abroad remained practically stable in the accrued in 2010.
Transactions led by Brazilians accounted for 60% of the total of 707 transactions. For 2011, Motta believes the main mergers will occur in the sectors of tourism, infrastructure, technology and security, especially promising due to the major international events the country will host. "The FIFA Cup and the Olympics will be more fuel for the mergers", he said.