Brazil M&As: Uncertain Outlook

Presidential elections and World Cup in soccer will impact Brazil’s M&A activity this year.

BY JOACHIM BAMRUD

The presidential elections in October and the World Cup in June and July are key factors that may influence mergers and acquisitions in Brazil this year, experts say.

“The outlook is quite uncertain,” says Andrew Jánszky, the head of Milbank’s Latin America Practice Group and managing partner of the São Paulo office. “This will be an eventful year, with the World Cup and the presidential elections, so it is harder than usual to predict activity levels.”

However, he believes it will be lower.

Luis Riesgo, Chair of Jones Day's Latin America Practice and Partner-in-Charge of the São Paulo Office, also points to the possible effect of the elections and the World Cup, but emphasizes that his firm continues to see a strong M&A interest in Brazil.

“On the one hand we note that the perception of Brazil from the United States and Europe has certainly soured over the recent months, and there is a lot of questioning in Brazil of how the elections and the World Cup might slow down the level of activity,” he says. “On the other hand, we...

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Keywords: Azul, Brazil, IMF, Jones Day, Mexico, Milbank, Oi, Vinson & Elkins, Rousseff, World Cup