The Brazilian mergers and acquisitions market reached 834 transactions between January and August 2026, involving R$210.7 billion (US$41.3 billion) in capital, according to a survey by TTR Data.

The highlight of the data is the contrast between the number of transactions and their size. Compared with 2025, the number of deals fell 31%, while the median deal value increased 61%, rising from approximately R$157 million (US$30.8 million) to R$252 million (US$49.4 million).

The Internet, Software & IT Services sector led the market in terms of transaction volume, with 140 deals, followed by real estate, with 131 transactions. The survey also shows significant cross-border activity: Brazilian companies made acquisitions primarily in the United States and Colombia, while U.S. investors led acquisitions of Brazilian companies.

Over the same period, Brazil led Latin America and accounted for approximately 65% of the region's total transaction value.

According to Vanderlei Garcia Jr., a legal consultant and professor at Universidade Presbiteriana Mackenzie, the decline in the number of deals does not indicate weakness in the market, but rather a shift toward greater selectivity.

"With the cycle of high interest rates moving into the past and large corporations strengthening their cash positions, particularly in sectors such as food, energy, financial services and agribusiness, appetite has shifted from fragmented transactions toward larger and more strategic acquisitions."

Private equity data highlights this movement. In the first quarter of 2026, there were only 17 transactions, but they mobilized more than US$3.1 billion (R$15.8 billion), showing that funds are increasingly concentrating capital in larger deals.

Venture capital, on the other hand, moved in the opposite direction, with the number of funding rounds falling by as much as 46% in some periods of the year, indicating that greater selectivity has also affected early-stage companies.

Foreign Investors Continue to Target Brazilian Companies

Foreign interest in Brazilian assets remains the dominant force in the country's cross-border M&A market.

The United States led acquisitions of Brazilian companies, with 87 transactions in 2026.

In the first half of the year, international investors had already announced 155 acquisitions of Brazilian companies, involving R$58.7 billion (US$11.5 billion). U.S. investors accounted for 64 of those transactions, with an aggregate value of R$20.4 billion (US$4.0 billion).

Several deals announced this year illustrate this strategic appetite, rather than purely financial interest. The acquisition of Serra Verde, Brazil's only rare earth mining company, by U.S.-based USA Rare Earth in a transaction valued at US$2.8 billion (R$14.3 billion) reinforces interest in assets linked to critical supply chains and the energy transition.

Italian company TIM took full control of I-Systems by acquiring the remaining 51% stake in the fiber-optic infrastructure company for R$947 million (US$185.7 million), joining a broader wave of acquisitions by Italian companies in Brazil.

See Also: Italian Capital Changes Strategy in Brazil as Plans for €15 Billion Investment Grow

According to Vanderlei, a combination of favorable exchange rates, discounted asset valuations and high-value sectors such as technology and industry is attracting a different type of investor to the Brazilian market.

"What attracts this capital is well known: favorable exchange rates, assets that remain discounted compared with other emerging markets, and opportunities concentrated in technology, real estate and infrastructure. However, foreign investors continue to weigh structural risks, such as legal certainty, the tax burden and regulatory instability, which remain the main source of caution at the negotiating table, particularly during due diligence and when structuring contractual protection clauses."

The emerging picture is of a Brazilian M&A market undergoing a structural transition: less fragmented and more strategic, with domestic companies taking more consistent first steps toward internationalization through acquisitions, while foreign capital remains focused on high-quality Brazilian assets, particularly in technology, energy and natural resources.

Brazilian Companies Expand M&A Activity Abroad

The flow of Brazilian capital into international acquisitions remains small compared with the opposite direction, but it is not insignificant. The main targets for Brazilian investments and acquisitions are the United States and Colombia, markets that combine legal certainty, cultural or geographic proximity, and consolidation opportunities in sectors already dominated by Brazilian groups.

"It is still a movement under development. Brazilian companies remain selective buyers rather than global M&A players, but the trend is expected to grow gradually as these companies build financial strength and develop greater governance sophistication for international transactions."

What to Expect From the Brazilian M&A Market

The emerging picture is of a Brazilian M&A market undergoing a structural transition: less fragmented and more strategic, with domestic companies taking more consistent first steps toward internationalization through acquisitions, while foreign capital remains focused on high-quality Brazilian assets, particularly in technology, energy and natural resources.

"For the next 12 to 24 months, the trend is toward consolidating this pattern of 'fewer transactions, more value per transaction,' with more sophisticated negotiations and more rigorous due diligence on both sides of the table," said Vanderlei Garcia Jr.