Mergers and acquisitions in Brazilian agribusiness see best performance in 5 years, says KPMG

The agribusiness sector recorded the highest number of mergers and acquisitions in the past five years, according to a report by the consultancy KPMG, which AgroPages reviewed first-hand. According to the report, from January to December 2024, there were 12 mergers and acquisitions.

This figure is 140% higher compared to the same period in 2023, when 5 transactions were completed, considering the sugar/ethanol and fertilizer segments. According to the study, in 2022 the agribusiness industry closed 11 agreements, while in 2021 and 2020 there were 9 each.

″The fertilizer segment was the highlight for mergers and acquisitions in agribusiness in 2024, with 9 transactions carried out during the year. This performance was expected, given that it is a capital-intensive activity and exposed to counterparty risks, particularly in a context of increasing judicial recoveries in agriculture,″ said Giovana Araújo, agribusiness lead partner at KPMG.

Regarding the type of operation, out of the 12 transactions completed between January and December 2024, five were domestic (between Brazilian companies); three involved foreigners acquiring the capital of companies established in Brazil (type CB1); three were by Brazilians acquiring from foreigners another company established in Brazil (CB3); and one involved a foreign entity acquiring, from another foreigner, the capital of a company established in Brazil (CB4).

The KPMG research indicated that Brazil registered 1,582 mergers and acquisitions of companies in 2024, a slight increase of 5% compared to 2023 when there were 1,505 such operations. Domestic transactions between Brazilian organizations (981) led these deals, followed by transactions involving majority foreign-owned companies (394) acquiring from Brazilians the capital of companies established in Brazil.

″National data shows an important recovery in the M&A market. After two consecutive years of decreases, the numbers reveal that companies are more active in such transactions. The number for 2024 surpassed that of 2023, and although it is lower than 2022 and 2021, it is already above those recorded in 2020 and all earlier years in our historical series,″ added Gustavo Vilela, lead partner for mergers and acquisitions at KPMG Brazil.

About KPMG

KPMG is a global network of independent firms providing professional services in audit, tax, and consulting. It has locations in 142 countries and territories, with 275,000 professionals working in member firms worldwide. In Brazil, there are more than 5,000 professionals, distributed across 15 cities in 10 states and the Federal District.

(Editing by Leonardo Gottems, reporter for AgroPages)