Panel SA: Mergers and acquisitions should keep pace without big jumps, say experts

Expectations in the mergers and acquisitions market remain without major leaps this year, in the face of higher interest rates and the turn of government in Brazil, which usually leads investors to be cautious. But 2023 should reinforce trends.

For João Pedro Viola, executive director of financial advisory at Alvarez & Marsal, in addition to ESG-related businesses, especially renewable energies, which should keep heating up, he still expects sectoral consolidation among internet providers and retailers.

“I would highlight retail in a more defensive movement. It is a sector that is experiencing structural transformation with the issue of omnichannel combined with impacts of the pandemic and higher interest rates”, says Viola. He points out that consolidation in the area predates the Americanas crisis.

Felipe Argemi, CEO of Santis, predicts a complicated year for the acquisitions market, with transaction levels and traded volume close to 2022.

For him, the Americanas case will have little weight in the ongoing purchase negotiations. “A big player leaves that was not active in M&A [fusões e aquisições]. They made acquisitions in 2015, joining with B2W and hortifruti. AME, in digital solutions, was making acquisitions in technology, but it’s a very big sector, and they don’t make a difference. The damage to retail operations will be marginal,” says Argemi.

According to a report by financial advisory RGS Partners, there were 49 operations involving companies in the consumer and retail sector last year, compared to 47 in 2021. The company points out highlights in the cosmetics segment, which also exceeds the total for 2021, and food and beverage , which had the same volume of operations.

Joana Cunha with Paulo Ricardo Martins and Diego Felix