ICT segment's M&A seen cooling in 2012

Thursday, December 29, 2011

Mergers and acquisitions in Brazil's IT and telecoms segment are expected to cool slightly in 2012 compared to the heated market seen in 2011, according to analysts quoted by news source Agência Estado.

"We had a higher volume [of M&As in 2011] than in 2010, which was relevant. We may have surprises in this segment, but it would be difficult for that rhythm to continue in 2012," said capital markets association Anbima's M&A coordinator, Bruno Amaral.

A similar opinion is shared by business consultancy Deloitte's corporate finance partner, Reinaldo Grasson. Nevertheless, the executive still foresees significant foreign investments being directed to the IT market.

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According to the analyst, Deloitte has been intermediating negotiations for deals of various sizes and in different verticals, but the lion's share of M&As next year is expected in retail - driven mainly by a fast growing middle-income sector - followed by oil and gas and infrastructure.

"There's major business in the oil and gas industry segment, as well as smaller transactions in the IT segment, where buyers want to place themselves among the Brazilian players," Grasson said.

Other specific segments highlighted by the analysts as seeing the greatest M&A movement in 2012 include wind farms, shopping malls in Brazil's south, retailers in the midwest, restaurants in the southeast and even soccer teams.