The eyes of the sporting world are certainly all on Brazil at the moment. Between the Olympic Games scheduled for Rio in two year’s time and the FIFA football World Cup finals starting this week, Brazil is the place to be sports fans.
The World Cup especially is usually a cause of great excitement, speculation and a little nervous trepidation for football lovers. Likewise, the Brazilian M&A market is causing some nervous trepidation of its own.
May 2014 saw a big slowdown in deals across Latin America and the Brazilian market has weakened significantly recently. Take, for example, the Mergermarket data in May 2014s Monthly M&A Insider, which shows that in the past four and a half years, “Santander Brazil shares decreased 40% since 2009…”, and this after the IPO showed such promise.
There are some bright spots in on the Brazilian deal-making landscape though; the energy sector is very active, with eight deals in Q1 alone this year.
However, back to the important business of the football – did you know that hosting the World Cup finals could be worth in the region of US$3billion to the Brazilian economy? This is according to the Wall Street Journal, which asks “Is hosting the World Cup worth it to Brazil?” Well, it will undoubtedly provide a nice boost to the economy, which has had a sluggish start to the year. The tournament is, however, unlikely to provide any long-term stimulus to an economy worth in the region of US$2.2trillion, but it might just tide them over until the Olympics.
If you have an M&A project in Brazil, or anywhere else, contact Merrill DataSite – the premier virtual data room provider; supporting dealmakers and football teams all over the world.
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