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Brazil Stands Out as It Enters Top 3 Countries Receiving Foreign Investments, Totaling Over R$ 351.36 Billion Invested in 2023 Alone

Written by Débora Araújo
Published on 10/07/2024 at 11:24
Brasil se destaca ao entrar no top 3 países que mais recebem investimentos estrangeiros, totalizando mais de R$ 351,36 bilhões já investidos só em 2023
Foto: CANVA
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Investments In Brazil Continue To Grow And The Country Is Highlighting Itself By Entering The Top 3 Destinations For Funding. Among The Fastest Growing Sectors Is Agriculture.

Brazil has become the second country in the world to receive the most foreign direct investments, according to the Organization for Economic Cooperation and Development (OECD). Just in the last year, US$ 64 billion in investments entered Brazil, around R$ 351.36 billion, with a large part of this amount directed towards the agriculture sector.

Understand The Reason For Investments In Brazil In The Agriculture Sector

This billion-dollar amount includes M&A processes, that is, mergers and acquisitions. For Leonardo Grisotto, a business consultant, the number of corporations from the United States and China stands out. Grisotto is the co-founder and managing partner of Zaxo, an M&A (Mergers and Acquisitions) boutique, a company specialized in providing customized advice to interested companies and those willing to be sold.

In his assessment, even with the unstable global situation due to military conflicts, such as the one between Russia and Ukraine and between Israel and Hamas in the Middle East, the international M&A market is heating up. In fact, precisely because of the pursuit of prominence on the world stage, the United States and China are leading this investment movement in Brazil through mergers and acquisitions of local groups. 

According to Grisotto, Brazil is a potential market. This attracts the interest of corporations from these two geopolitical players, China and the United States. The trend is for increased movements from American and Chinese companies for mergers and acquisitions in Brazilian territory.

Companies from a wide range of economic activities are on the radar. Agriculture, infrastructure sectors, such as construction, basic sanitation, and public utility concessions, as well as industrial segments like pharmaceuticals and others, can be cited among the main ones, observes the managing partner of Zaxo.

Main Sectors To Receive Investments In Brazil

According to a report released in March by PwC Brasil, in 2024, mergers and acquisitions in the country are expected to grow compared to the previous year. Just in the first month of the year, at least 85 of them were mapped by PwC Brasil. Another survey from the M&A Community points to another 63 mergers and acquisitions in Brazil, compiled during a period from March 20 to April 3.

Brazilian organizations willing to showcase themselves should prepare for a potential merger or acquisition. In this sense, the work of M&A boutiques like Zaxo becomes essential. The specialized advisory applies methodology to prepare the business for sale, enhancing market value perception and even assisting in the buyer’s incorporation process.

According to Grisotto, a M&A process involves two sides: the corporation acting to buy (buy-side) and the company being put up for sale (sell-side). Both sides must have professional and personalized advisory for a “win-win” relationship.

Agriculture In Brazil Continues To Grow

Agriculture plays a fundamental role in the development of the Brazilian economy and the world. With investments in Brazil, the sector is responsible for several products that reach Brazilian homes, from ingredients for meals to raw materials used in clothing, furniture, and fuels.

In addition to activities related to the field, agriculture interacts with other social and economic spheres. New practices, research, machinery, technologies, and many other innovations have emerged from the sector’s needs and advancements.

Year after year, agriculture makes a difference in the daily lives of Brazilians. Despite significant figures, as in the previous year, in 2023, the agriculture GDP recorded a decrease of 2.99%.

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Débora Araújo

Débora Araújo é redatora no Click Petróleo e Gás, com mais de dois anos de experiência em produção de conteúdo e mais de mil matérias publicadas sobre tecnologia, mercado de trabalho, geopolítica, indústria, construção, curiosidades e outros temas. Seu foco é produzir conteúdos acessíveis, bem apurados e de interesse coletivo. Sugestões de pauta, correções ou mensagens podem ser enviadas para contato.deboraaraujo.news@gmail.com

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