Political crisis, recession drag down M&A activity in Brazil
The number of mergers and acquisitions in Brazil fell by 29% year-on-year in the first half due to the country's political crisis and economic downturn.
According to a report released by PricewaterhouseCoopers, 287 transactions were completed during 1H16 compared to 406 during the same period in 2015.
The data show the Brazilian market has returned to the same level it was during the global financial crisis in 2009, when 258 M&A transactions were competed in the first half of the year.
There were 43 transactions in June alone, 40% lower than the same period last year (72 transactions). May was the worst month so far in 2016, with 41 M&A deals.
PwC partner Rogério Gollo says the decline in the first half was due to the uncertainty caused by Brazil's political crisis and struggling economy.
Despite the strong H1 decrease, Gollo expects the number of transactions to increase in the second half of the year.
"The expectation is that many transactions will be finalized in the coming months, causing the market to reach the same levels as 2015, when 742 deals were made," he said.
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