The value of mergers and acquisitions (M A) involving foreign companies in Brazil exceeded the value of M As involving domestic companies for the first time in 2015, according to Valor Economico.
This leading economic daily reported on Wednesday that 773 M As took place in Brazil in 2015. Though the total went down 5.5 percent compared with 2014, 398 of these involved foreign companies. Among the 398, 296 saw foreign companies buy Brazilian firms, while the rest saw foreign-held assets in Brazil acquired by other international companies.
This research was carried out by KPMG with its partner, Luis Motta, quoted as saying that "the current economic scenario and devaluation of the real may have accelerated the entry and expansion of international companies in Brazil, as well as the reduction in value of local companies."
The largest transaction completed in 2015 saw China Three Gorges Corporation (CTG) buy Jupia and Ilha Solteira plants at 3.7 billion U.S. dollars. With this move, CTG became the second-largest private power generator in Brazil.
The largest proposed transaction saw SunEdison (SUNE) buy a portfolio of assets from Renova Energia, worth 3.89 billion U.S. dollars, but SUNE later canceled the deal due to investors' rejection.
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