In 2021, Brazil recorded mergers and acquisitions worth R$595.5 billion, an increase of 51% over the previous year, according to data from the Transactional Track Record (TTR) annual report. Some sectors have been standing out by presenting a high number of M&A processes.
According to the TTR report, transactions in the technology sector were the most common, totaling 933 transactions, an increase of 67% compared to 2020. Then comes the financial and insurance sector, with 469 transactions.
The country that invested the most in Brazil in 2021 in M&A transactions was the United States, with 244 transactions, followed by Argentina, with 39 transactions.
Recall the largest merger and acquisition operations in Brazil in 2021, by sector.
Aviation: Embraer’s Eve and Zanite
Eve Urban Air Mobility, owned by Brazilian Embraer, and American company Zanite joined together in a US$ 2.9 billion operation. The new company, Eve Holding, is born with resources to finance itself until the certification of its electric vertical take-off and landing vehicle (eVOLT), scheduled for 2025.
Bens de consumo: 3G Capital e Hunter Douglas
3GCapital, owned by Brazilians Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira, bought the Dutch multinational of blinds, curtains and architectural products Hunter Douglas for US$ 7.1 billion. The deal is another 3GCapital onslaught in traditional giants that focuses on consumer goods that are part of people’s daily lives. The Brazilian company already had in its portfolio Kraft Heinz and Burger King, of food.
Education: Vitru and Unicesumar
Vitru, parent company of the education group from Santa Catarina, Uniasselvi, signed in August the purchase of 100% of Unicesumar (Center for Higher Education in Maringá) for a value of more than R$ 3 billion.
Energy: Equatorial and Echoenergy
Equatorial Energia bought Echoenergia in a transaction worth around R$10 billion. Created and controlled by the British private equity manager Actis, Echoenergia is a holding of wind farms and all of them are located in the Brazilian Northeast.
Financial institutions: JPMorgan Chase and C6 Bank
American bank JP Morgan Chase bought 40% of C6 Bank in June 2021. Founded in 2019, C6 Bank has around 11 million customers and became a unicorn (startup valued at $1 billion or more) in 2020.
Oil: Mubadala Capital and Landulpho Alves Refinery (RLAM), from Petrobras
Last November, Petrobras concluded the sale of the Landulpho Alves refinery (RLAM), in Bahia, to Mubdala Capital, based in Abu Dhabi, in the United Arab Emirates. The offering was completed at $1.8 billion.
Health: Hapvida and Notredame Intermédica
The two companies reached an agreement to merge the two operations in 2021. The closing of the operation took place this year, after Cade approved the merger. The union of the two companies created the largest operator of health plans in the country, with about 14 million users. The new company has a market value of around R$83 billion.
Sanitation and environment: Aegea, Iguá and Cedae
The sanitation companies Aegea and Iguá won the dispute for most of the assets of the Rio de Janeiro sanitation company Cedae. The auction moved R$ 22.7 billion.
Technology: B3 and Neoway
Brazilian stock exchange B3 bought technology company Neoway in October for BRL 1.8 billion. Neoway, founded in 2002, specializes in big data analytics and artificial intelligence for business.
Technology: Totvs and RD Station
In March 2021, management software developer Totvs announced the purchase of the marketing automation software company RD Station (formerly Resultados Digitais), from Florianópolis, in a deal worth more than BRL 1.8 billion.
Telecommunications: BTG Pactual and InfraCo
In July last year, BTG Pactual acquired control of InfraCo, the fiber optic division of the operator Oi. The value of the deal was R$ 12.9 billion.
Retail: Carrefour and Big
The Carrefour group bought Big, controlled by the investment fund Advent International and Walmart, for R$ 7.5 billion. Big owns brands such as Big, Super Bompreço, Maxxi Atacado, Walmart and Sam’s Club in Brazil and has more than 40,000 employees in the country.
Retail and technology: Magalu and Kabum
Magazine Luiza announced in July the acquisition of Kabum, the largest e-commerce platform for technology and games in the country. The deal was closed for R$ 1 billion.
Clothing: Soma and Hering
Grupo Soma, owner of the Farm, Animale, Cris Barros and NV brands, bought the clothing manufacturer Cia. Hering in April 2021, with an offer of BRL 5.1 billion. The 140-year-old company from Santa Catarina was also disputed by the shoe company Arezzo&Co, which had offered R$ 3.4 billion for the deal.
