Foreign buyers lead Brazil’s M&A as trophy assets hit market – Valor International

03/07/2026 07h48 Atualizado 03/07/2026 07h48 Foreign buyers have returned to the forefront of acquisitions of Brazilian companies in the first half of 2026 and now account for more than half of the financial volume in the country’s mergers and acquisitions market. The rebound comes amid geopolitical uncertainty and recent friction between Brazil and the United States, though those tensions have not stopped international investors from showing greater interest in local assets. So far this year, transactions involving foreign buyers total $15.91 billion, equivalent to 56.5% of the financial volume of M&A deals announced in Brazil. Overall M&A volume in the country reached $28.16 billion, according to Dealogic data compiled at Valor’s request. Foreigners take record share of Brazil’s real estate fundsSchonfeld builds Brazil team for global fund The cross-border total is already approaching the $18 billion for all of last year, when such transactions accounted for 35% of the $53.2 billion handled by Brazil’s mergers and acquisitions market. The U.S. has again become a leading source of foreign investment, despite recent measures taken against Brazil by Donald Trump’s administration. Year to date, U.S. buyers have accounted for 13.4% of all M&A transactions in the country, with $3.76 billion in deals. That is twice the total volume seen in all of 2025. The largest amount spent by U.S. investors in Brazil came in 2022, when transactions totaled $7.6 billion, according to Dealogic. The main deal involving U.S. capital this year was the sale of Serra Verde, owner of the only commercial-scale rare earths mine outside Asia, located in Minaçu, Goiás, to USA Rare Earth. The transaction valued the Brazilian company at $2.8 billion. Another relevant deal was Warburg Pincus’s purchase of a minority stake in Global Eggs. Natural resources A major acquisition by a Chinese buyer also took place in natural resources, with Votorantim selling aluminum producer CBA to Chinalco, which made the purchase together with Rio Tinto. In the process now underway for the sale of Companhia Siderúrgica Nacional’s cement business, Chinese bidders have emerged as strong candidates to acquire the assets. The renewed advance by U.S. investors puts the country back ahead of China as the main source of capital for acquisitions in Brazil. Chinese buyers have moved $1.9 billion this year, roughly half the financial volume spent by U.S. investors. That marks a shift from 2025, when China led cross-border transactions in Brazil with $4.2 billion, more than twice the US$1.8 billion from U.S. buyers. Last year’s Chinese deal volume was the highest since 2017. The fact is that more assets are being sold to foreign buyers this year, a trend expected to continue. “Cross-border has returned to historical levels after a recent decline, reinforcing Brazil’s role as a relevant destination for international capital,” said Anderson Brito, head of investment banking at UBS BB. According to Brito, deals involving foreign buyers are likely to remain high this year, accounting for 50% to 60% of total transaction volume. Diogo Aragão, head of M&A in Brazil at Bank of America (BofA), said foreign interest has been focused on sectors where Brazil has a competitive edge, such as natural resources and infrastructure. Aragão also highlighted technology, where buyers see Brazil’s size and the underpenetration of some services as an opportunity. “There is interest because of geopolitical issues, because the market is large, and because in technology there is underpenetration of products,” he said. Off limits Pedro Muzzi, head of mergers and acquisitions at Goldman Sachs in Brazil, said foreign appetite for the country remains strong because of the importance of the Brazilian market. But it has increased significantly because some assets now up for sale were not previously available. A window of opportunity has opened, and foreign investors have been taking advantage of it, Muzzi said. Interest from overseas investors in specific assets has helped broaden appetite and explains part of the growth. Andres Sommer, head of M&A at Morgan Stanley in Brazil, said cross-border deals have dominated M&A conversations, unlike in previous years. “Important assets are being negotiated, and players are now taking advantage,” he said. Fabio Medeiros, head of investment banking at Morgan Stanley in Brazil, said the strong presence of foreign investors in negotiations also reflects the fact that so-called “trophy assets” are on the table—assets that naturally attract large global investors. “After some time, standout assets in their sectors, which had never been available, are being negotiated. These are larger transactions, and they become more cross-border,” he said. Dimas Megna, head of investment banking in Brazil at J.P. Morgan, also said cross-border M&A is in focus this year. “Globally, we are seeing a very active environment, with megadeals driving volumes, and we continue to expect an acceleration in cross-border transactions over the next year.” Megna said Brazilian assets have increasingly attracted a diversified group of global buyers, especially in sectors where they see competitive advantages. “The result is that Brazil remains very well positioned: while the United States continues to lead global megadeal activity, especially in technology and new-economy sectors, Brazil has been capturing relevant and diversified cross-border flows in segments where it has structural advantages,” the Megna said. Another trend cited by executives is the rise in deals between South American countries. That dynamic was seen in Colombian oil company Ecopetrol’s purchase of a stake in Brava, and last year in the acquisition of Motiva’s airports by Chile’s Asur. This article was translated from Valor Econômico using an artificial intelligence tool under the supervision of the Valor International editorial team to ensure accuracy, clarity, and adherence to our editorial standards. Read our Editorial Principles. 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