Brazil M&A And Private Equity Forum 2017

Tivoli Mofarrej, Sao Paulo

Welcome to Mergermarket's Annual Brazil M&A Forum!

While political uncertainty has returned to Brazil, government officials have indicated proposed structural reforms will move ahead as planned. This is good news for domestic and foreign investors. Acquisition opportunities abound from favorable equity valuations thanks to currency depreciation and other factors while the effects of stabilized oil, gas and raw material prices imbue investors with confidence.

Market observers are expecting continual consolidation in the energy market, albeit at a slower pace from previous years, and in the business service subsectors, education, healthcare, I&C and consumer/retail segments. Foreign investors are also seen as accelerating the tempo at which Brazilian firms get acquired. Global transactions with Chinese buyers reached a record high of USD 208bn, of which Latin American accounted for 7.6% of those deals last year.


*Please note, this event will be conducted in Portuguese.

Registration and Coffee

Opening Remarks

    Gabriel Petrus, Senior Analyst, Global Risk Insights

Brazilian M&A Prospects Brighten

In 1Q17, the economic powerhouse of Brazil saw 66 deals worth US$ 8.2bn, up 22.2% in value compared to Q1 2016, despite three fewer deals, which was a 4.3% drop compared to Q1 2016. The country dominated the region in Q1 2017 with a 61.9% market share by value. According to Mergermarket data, the engines of M&A growth came in the business services and industrial & chemical sectors, registering 14 and 15 deals, respectively.

Listen to panelists discuss the opportunities and risks associated with Brazilian M&A investments including:

  • All cash vs. all stock M&A deals – examining opportunities among companies trading at discount to book value and other trending, favorable metrics.
  • Distilling various macro-economic patterns to gain clarity.
  • What investor opportunities and challenges are emerging from the Real's continued depreciation?
  • Analyzing Brazil's advantages over the other large emerging economies of Russia, India and China as a destination for investment.

  • Speakers
    Danish Faruqui, Managing Director, Parthenon-EY
    Otavio Guazzelli, Managing Director, Moelis & Company
    Thiago Barbosa Sandim, Partner, Demarest
    Thiago Barrozo, Latin America Editor, Mergermarket (moderador)

Coffee Break

Presentation: Education Investment Opportunities in Latin America

    Karan Khemka, Managing Director and Head of International Education Practice, Parthenon-EY

EMU Sector Continues Track Record of Consistent Deal Making

The largest South American deal of 2016 was for a 23% stake in Brazilian electric utility company CPFL Energia, which State Grid Corporation of China bought for USD 12.4bn in September. The deal signaled healthy investor appetite for Brazilian assets, especially in the EMU sector which registered 32 deals for a whopping USD 30.5bn. No other sector came close to this valuation in 2016. Mergermarket forecasts indicate the EMU sector will continue to attract M&A and capital over the next year. In 1Q17, the acquisition of a 5.1% stake in Vale SA, the global mining company, by Valepar SA that was worth USD 1.9bn and ended up as the second-largest transaction out of the top five deals in Central & South America.

Panelists will discuss risk and reward in one of Brazil's most lucrative and consistent markets.

  • Examining what opportunities remain in the Brazilian energy market?
  • What assets will go to auction from Petrobras' recent selling-spree?
  • Assessing how foreign investors are shaping deal flow and impacting valuation in Brazil? How far in the future will these trends continue?
  • Discussing recent developments in mining.

  • Speakers
    Fernando Bernacchi, Partner, Focus
    Nestor Casado, Partner, Capital Invest
    Valentina Cumo, Vice President, Darby Private Equity
    Bruna Maia Carrion, Sao Paulo Correspondent, Acuris (moderadora)

Will Reforms Move Forward?

The probability of structural reform legislation becoming law is conditional given President Michel Temer chances of remaining in the Presidential office. Political risk consultancy Eurasia Group has calculated the odds of the president being removed at 70%. If ousted, will reforms move forward, undergo modification, or get scrapped altogether? The proposed reforms could have big implications for the economy as some sectors could flourish while others lose out.

  • Latest insight into how the political class is now approaching reform.
  • If reforms fail to pass, how will private sector adapt?
  • If President Temer is removed from office, who assumes the mantle of reform?
  • How will construction industry progress in post-Oderecht world?
  • Examining odds of pending legislation that would allow foreign firms to take 100% ownership stake in Brazilian airline companies.

  • Speakers
    Gabriel Petrus, Senior Analyst, Global Risk Insights
    Ilson Paneto, Client Service Director, Radius Worldwide
    Thomaz Favaro, Associate Director, Control Risks
    Thiago Barrozo, Latin America Editor, Mergermarket (moderador)


Acquirers Go Shopping in Brazil's Consumer Retail Industry

M&A interest in consumer product businesses utilizing a subscription model and offering personalization features is on track to continue into 2017, with both strategic and financial sponsors expected to be active acquirers in the space. Competition between sponsors has made deals more expensive in consumer categories, while strategic consolidation continues to drive the retail space. Personal care, consumer packaged goods, and food and beverage continue to be the hottest segments, as demonstrated by the third largest 1Q17 deal when Heineken NV acquired beverage retailer Brasil Kirin Holdings SA for USD 1.1bn

Delegates will listen to panelists discuss market dynamics and deal making in the Consumer-retail subsector.

  • As competition intensifies how are midcap players sourcing deals in family-run consumer-retail businesses?
  • Assessing how much further will Brazilian retail consolidate?
  • Analyzing opportunities in the food and beverage market segment.
  • What technologies are retail businesses investing in to try to stay apace with market disruptors?

  • Speakers
    Ana Cabral-Gardner, Co-Founder & Managing Partner, A:10 Assessoria e Investimentos
    Luis Paulo Rosenberg, Associate Director, Rosenberg Partners
    Ricardo Belotti, Founding Partner, Belotti & Associados
    Bruna Maia Carrion, Sao Paulo Correspondent, Acuris (moderadora)

Coffee Break

Outlook on Brazilian Buyout Opportunities

Private equity buyout firms continue to shop for their favorite Brazilian assets in the Consumer, Business Service and EMU sectors. Last year, the largest buyout (USD 5.2bn) consisted of a Canadian based consortium led by Brookfield Infrastructure Partners that took a 90% stake in gas pipeline firm Nova Transportadora do Sudeste. Interestingly, this deal symbolized one of the main M&A trends in Latin America – the ongoing rise of cross-border activity. Inbound deal making grew 46.3% by value last year while domestic M&A slid lower in 2016, falling 31% in value to USD 22.3bn.

Panelists will discuss private equity activity and opportunities throughout Brazil.

  • Assessing credit market conditions impact on Brazilian buyouts.
  • What subsectors are ripe for buyouts over the next 12 months?
  • How much foreign GP appetite is there for Brazilian energy infrastructure?
  • Mining prospects for buyout funds.

  • Speakers
    Jon Kellner, Partner, Shearman & Sterling
    Ricardo de Carvalho, Managing Partner, Xingu Capital
    Thiago Rodrigues Maia, Partner, Demarest Advogados (moderador)

Cocktail Reception

*Agenda is subject to change

Contact Us

Get in touch with us to find out about speaking opportunities, sponsorships, or registration.

Lead Strategic Partner


Venue details

Tivoli Mofarrej
Alameda Santos
1437 - Cerqueira César
São Paulo - SP, 01419-001, Brazil