Brazil’s mergers and acquisitions market totaled US$49.2 billion (R$268.6 billion) in the third quarter of 2026, a 31% increase from the same period a year earlier, according to a study by consulting firm Aon. The number of transactions fell 31.15% to 968, pointing to a market increasingly concentrated in higher-value deals.

“The M&A market has become more selective. Asset quality, due diligence and the ability to close deals are becoming more important,” said André Nogueira, Aon’s M&A solutions leader in Brazil.

Traditional M&A accounted for 518 transactions worth US$28.26 billion (R$154.3 billion). Private equity recorded 62 deals totaling US$10.89 billion (R$59.4 billion). Asset acquisitions numbered 223, with a combined value of US$8.14 billion (R$44.4 billion), while venture capital registered 167 deals worth US$1.89 billion (R$10.3 billion).

Internet, software and technology services led by transaction count, with 161 deals. However, the sector’s M&A volume fell 39% from the third quarter of 2025. Real estate ranked second, with 147 transactions, down 1% year over year.

Aon identified two of the largest deals involving Brazilian companies as transactions between Afya and Nexa Resources, valued at about US$2.65 billion (R$14.5 billion) combined, and Australian company South32’s acquisition of assets in Brazil’s aluminum supply chain for approximately US$1.16 billion (R$6.3 billion).

Across Latin America, Brazil accounted for 61% of the total value of M&A activity. The region recorded 1,720 deals in the first nine months of 2026, a 26% drop from the same period in 2025, while total deal value declined 5.1% to US$78.8 billion (R$430.2 billion).

Colombia and Peru also saw fewer transactions alongside higher aggregate values. Colombia’s deal count fell 19.6%, while its total value rose 58.5%. Peru recorded a 19.5% decline in M&A transactions, alongside a 122% increase in value.

Aon expects the number of transactions across the region to recover gradually in 2027. Pedro da Costa, the firm’s head of M&A for Latin America, said the cost of capital, the predictability of economic and trade rules, and the alignment of buyers’ and sellers’ price expectations will be key factors.

Sources: Folha Mercado.