Energy Drives 60% of Mergers and Acquisitions in Brazil

Survey by Seneca Evercore shows that energy and natural resources companies have fueled deals

By Stéfanie Rigamonti

By Stéfanie Rigamonti

Amid growing discussions about the energy transition, there has been a boom in mergers and acquisitions among energy and natural resources companies in the past five years. Today, these sectors are responsible for the majority of M&A activity in the country.

According to a survey by financial advisory firm Seneca Evercore, based on data from MergerMarket, the share of these sectors in the total value of mergers and acquisitions in Brazil rose from 9% in 2020 to 44% in 2024. In the first half of this year alone, it reached 59.7%.

The largest M&A deal of the year in terms of volume was the sale of a 60% stake in the Peregrino field by Norway’s Equinor to Brazilian oil company PRIO, for US$ 3.5 billion.

In second place was the tender offer for Serena Energia, which resulted in its delisting and moved US$ 2.8 billion. Third was J&F’s acquisition of Paper Excellence’s stake in Eldorado Brasil Celulose, for US$ 2.7 billion.

Several factors explain this increase, including the diversification of energy sources (still heavily concentrated in oil), environmental concerns, and the sector’s resilience to macroeconomic conditions.

With prices that are regulated or more tied to international fluctuations, energy and natural resources companies are less affected by domestic interest rate and inflation dynamics.

“These are sectors less exposed to domestic market fluctuations and to the country’s political and economic uncertainties,” says Daniel Wainstein, founding partner at Seneca Evercore.

The total transaction value of mergers and acquisitions in Brazil rose 40% between January and June this year compared to the same period in 2024, reaching US$ 29.15 billion. In May alone, the market moved US$ 12.42 billion — the best monthly performance since February 2021.

Published in Folha de S.Paulo on July 2, 2025 and available here: https://www1.folha.uol.com.br/colunas/painelsa/2025/07/energia-responde-por-6-em-10-fusoes-e-aquisicoes-no-brasil.shtml