A survey by Seneca Evercore covering January through March shows that deals totaled $15.9 billion, up 30% from the same period last year. It was the strongest first quarter since 2021.

The recovery, however, came with fewer transactions. There were 153 deals in the quarter, down from 198 a year earlier, a sign that activity has picked up again on the back of larger transactions.

Two deals accounted for a meaningful share of the total volume: the combination of Odontoprev, a Brazilian dental plans company, and Bradesco Saúde, Bradesco’s health insurance arm, estimated at $5.8 billion; and the $1.9 billion sale of Companhia Brasileira de Alumínio (CBA), the Brazilian aluminum producer owned by Votorantim, to China’s Chinalco and Anglo-Australian mining company Rio Tinto.

For Daniel Wainstein, a partner at Seneca Evercore, the trend points to a revival in M&A after two weaker years. “Many transactions that had been put on hold last year came back at the start of this year.”

He said companies and investors are trying to take advantage of a more predictable environment in the first half to complete deals before conditions potentially become more unstable in the second half because of the presidential election. In 2025, Brazil’s M&A market totaled $58.4 billion.

Political uncertainty remains one of the main obstacles to this type of transaction, he said. “What the market needs is less uncertainty. As polls define the landscape, it becomes easier to price assets because volatility declines,” he said. His expectation is that, once the election picture becomes clearer, negotiations will move more smoothly.

Foreign interest returns

At the same time, there are signs that foreign appetite is improving. Overseas investors, especially Americans, have started paying closer attention to Brazil again.

“With China off the current U.S. strategic map and India already saturated with investment, Brazil is the main ‘third way’ among large-scale emerging markets,” Wainstein said.

That interest has focused on sectors such as financial services, renewable energy and technology. In finance, changes are underway as independent platforms expand in wealth management, insurance and lending.

“There is a real revolution in the sector,” he said. In his view, that shift is creating room both for fresh investment and for mergers among smaller companies.

Longer-term funding

Credit conditions have also supported the trend. Brazilian companies have been extending their debt maturities, replacing short-term loans with longer-term funding raised in the capital markets.

For Wainstein, that lengthening of debt profiles allows companies to pursue investment plans with less pressure on cash generation, creating value for shareholders.

With more investors active in the market, companies with stronger capital structures have been taking advantage of the moment to consolidate fragmented industries.

“The opportunity to finance this through long-term instruments changes the game significantly,” he said.

By sector, technology led deal volume in the quarter with 18%, followed by consumer and retail at 15% and financial institutions at 14%. In addition to the large healthcare and mining deals, the report points to transactions in telecommunications involving IHS Towers and Desktop, and in energy involving Wilson Sons and Petrobras assets.

Wainstein expects the pace to continue in the second quarter. “The trend is for the recovery to continue compared with 2024 and 2025,” he said.