In the second two-month period of 2017, the reduction of the Selic to 11.25% and the rumors of better expectations of the economy tend to force the reduction of the interest rates practiced by the banking sector and to boost the renegotiations of debts.
Although political scandals have hit the foreign exchange and stock exchange markets, the number of mergers and acquisitions in the domestic market has been leverage and the perception of M&A boutiques and investment bankers is that the Brazilian economy is at an inflection point, bringing new life to potential buyers.
In the food sector, private equity transactions and equity investments have been announced, for example, the acquisition of 20% of the capital stock of CBL Alimentos, the former Betânia, a food company specializing in milk processing and derivatives production, with units in Ceará, Pernambuco and Sergipe. Another relevant transaction in the sector is the acquisition of 40% of dairy products from Porto Alegre by EMMI, a Swiss dairy company, strengthening the company’s operations in South America, attesting the interest of foreign companies in the potential of dairy consumption in Brazil.
In moments of crisis recovery, liquidity problems and consumption retraction, the theme of Mergers and Acquisitions heats up and becomes a strong strategy for corporate restructuring. In dealing with the food sector, although the transactions carried out in recent years are of high value, the segment is still very regionalized and pulverized, making this market a strong target for consolidation by acquisitions.