Brazil’s M&A scene turns inward as high interest rates deter foreign buyers
The number of mergers and acquisitions (M&A) in Brazil is expected to close the year at roughly 1,400, driven largely by domestic activity as the country’s high borrowing costs shift dealmaking firmly into local hands, according to new research from PwC.
PwC’s analysis shows that 1,087 transactions were completed in Brazil up to the end of September – a robust performance compared with the past five years. Domestic buyers have dominated the 2025 market, accounting for 884 deals, while international firms were involved in 203.
“Despite periods of political and economic instability, M&A activity has continued to grow steadily over recent years,” said Leonardo Dell’Oso, Partner at PwC.
However, activity remains below the record levels seen during the pandemic boom of 2021, when 1,659 deals were completed across Brazil – mirroring a global surge in dealmaking.
One major factor shaping the current landscape is Brazil’s Selic interest rate, which stands at 15%, its highest in nearly two decades. The high rate has made acquisition financing more challenging, particularly for foreign investors, who are therefore increasingly turning their attention to other Latin American markets.
Illustrating this trend: So far in 2025, US companies have completed 70 deals, while Chinese firms have been involved in just 5 – a sharp decline from pre-pandemic levels.
PwC’s researchers warn that this more cautious investment climate could weigh on Latin America’s largest M&A market in the months ahead. Local players are meanwhile better positioned to navigate Brazil’s homegrown hurdles and move quickly on opportunities – fuelling a wave of domestic consolidation across sectors such as financial services, agribusiness, and healthcare.
