Brazil to See a Rush to Close M&A Deals Ahead of the Election, Says Seneca Evercore Partner

(O Globo) The coming months are expected to be busy in the universe of mergers and acquisitions M&A in Brazil, according to market players, with a race against time to complete transactions before the electoral campaign gains momentum, says Rodrigo Mello, cofounder of independent financial advisory firm Seneca Evercore.

The year 2026 is expected to be challenging, but Brazil will experience a strong push to close M&A transactions and capital markets deals, particularly in the first half of the year. The reason, of course, is the electoral calendar, which tends to affect the timing of transactions, according to Mello, whose firm advises companies during deal processes.

M&A volume in Brazil jumped 27% in 2025, according to data from Mergermarket compiled by Seneca Evercore, reaching US$ 58 billion last year. Despite the increase in deal value, the number of transactions fell 3% year over year.

“2025 was not a good year for the segment in terms of the number of transactions, which hit the lowest level in six years. Even so, the volume in reais was very relevant, because some deals involved very large checks, which pushed the figures higher.”

Mega-deals

One example was the acquisition of a 30.3% stake in Neoenergia, which operates in power generation, transmission, and distribution, by Spain’s Iberdrola. Previ, Banco do Brasil’s pension fund, sold the stake for R$ 9.7 billion. Neoenergia has also announced a public tender offer to acquire the remaining minority shares for R$ 6.5 billion.

Daniel Wainstein, also a cofounder of Seneca Evercore, believes that the M&A environment could heat up again “with the Selic interest rate expected to begin falling soon, which could push asset prices higher and lead shareholders to reconsider selling minority stakes.” In addition, “a lower cost of financing may help buyers seeking funding for their acquisitions.”

Wainstein, Mello, and the firm’s other cofounder, Isaias Szlifer, previously worked at Goldman Sachs and cofounded Seneca Evercore in 2015. In 2020, they acquired a minority stake in the firm from Banco BTG Pactual. In 2023, they sold 20% of the business to the American investment bank Evercore. Since then, the firm has operated under the name Seneca Evercore.

Published on 01/12/2025 and available at: https://oglobo.globo.com/blogs/capital/post/2026/01/brasil-tera-corrida-para-fechar-fusoes-antes-da-eleicao-diz-socio-da-seneca-evercore.ghtml