Overview

In the first half of 2025, M&A activity in Brazil registered 633 transactions, with a 6.1% decrease in comparison with the same period previous year. Last Twelve Months account 1.385 transactions with a marginal decrease of 2.9% when compared to 2024. Sectors are more active in technology (software/ IT), financial services, food & beverages, energy and general services.

Capital Markets Overview – H1 2025

In the first half of 2025, Brazil’s capital markets continued to show restrained activity, marking the second consecutive year of decline. Only three follow-on offerings were executed, raising BRL 3.5 billion (approximately USD 0.7 billion). IPO activity remained absent, with no new listings since January 2022. Despite subdued issuance, the Ibovespa/B3 Index posted a robust gain of 15.6%, reflecting investor optimism and market resilience.

On the macroeconomic front, inflation measured by the Broad Consumer Price Index (IPCA) stood at 2.7% year-to-date. In response to evolving economic conditions, the Central Bank of Brazil (BACEN) raised the benchmark interest rate (SELIC) to 15.0% as of June 2025. Meanwhile, the Brazilian Real (BRL) appreciated 12.1% against the US Dollar, signaling strengthened currency performance amid global market dynamics.