Why have M&A’s increased in Brazilian agribusiness in 2025 – and should remain high

The merging betwixt Marfrig and BRF this twelvemonth drew the attraction of the marketplace by the sheer magnitude of the woody – which involves an added gross of 160 cardinal Brazilian reais. The deal, however, is portion of a overmuch larger maturation inclination successful the measurement of merging and acquisitions (M&A) successful the Brazilian agribusiness, arsenic reveals an exclusive survey by the auditing steadfast PwC Brasil.

According to the study, from January to August this year, 46 merging and acquisitions happened successful the country, with an estimated worth of 2.5 cardinal dollars (13.6 cardinal Brazilian reais successful the existent quotation) – estimated due to the fact that not each transaction discloses their values. This is simply a 39% precocious successful examination to the adjacent play of 2024.

High taxes, sparse credits and an ongoing commercialized warfare person built the perfect script for the summation successful the fig of this benignant of cognition successful the archetypal 8 months of 2025.

For Leonardo Dell’Oso, an subordinate of PwC successful Brazil and liable for the country of firm finance, this summation is grounds for the grade of economical uncertainties and policies successful which the agribusiness is inserted.

“It's a strategical determination for survival. In a script of choky margins, the hunt for amended profitability and operating currency flow, this determination contributes to outgo optimization,” helium says.

Since 2008, erstwhile PwC started making these kinds of measurements, the years marked by economical crises oregon sanitary insecurities, specified arsenic COVID-19 betwixt 2020 and 2022, saw peaks. In 2025 especially, the ongoing tariff war, led by the United States, strengthened the volatility, says Dell’Oso.

Among the sectors with the astir M&A’s, agribusiness, which involves nutrient harvest and livestock, has had a notable increase: transactions jumped from 3 successful 2024 to 12 successful 2025.

Another assemblage that saw maturation was meatpacking and slaughterhouses, whose operations accrued from 3 to six successful the aforesaid period. The poultry assemblage maintained the fig of 7 transactions, the aforesaid arsenic the erstwhile year.

According to Dell’Oso, a somewhat little fig of M&As was expected successful the sector. However, the tariffs imposed by Trump and the avian flu outbreak successful Brazil successful May near the carnal macromolecule assemblage exposed.

“Partners and concern owners are avoiding investing much superior and seeking diversification to trim risks. With the IPO marketplace unattractive, the alternate for these companies to go much financially viable is to merchantability oregon merge,” helium says.

In Dell'Oso's projections, mergers and acquisitions passim 2025 are expected to turn 40% compared to 2024, reaching 62 transactions, a fig adjacent to that recorded successful 2021, erstwhile the satellite was inactive experiencing the impacts of the pandemic.

For 2026, expectations are besides of a high, since economical and geopolitical uncertainties should remain, and Brazil has 1 much ingredient. “The upcoming elections besides make instability. The inclination is for companies successful the agribusiness to face, sadly, doubts and hardships”, helium says.