Latin America at the Crossroads of Global M&A

The new edition of BDO Horizons, BDO's global quarterly report, analyzes the main developments and trends in the mergers and acquisitions (M&A) market in the mid-market segment, with a detailed focus on the global landscape and the most relevant regions in the world.

2025 was a complex year for the global mergers and acquisitions (M&A) market. In the second half of the year, global M&A activity fell by 10%, with a total of approximately 6,000 transactions. Despite this reduction in volume, the aggregate value of deals remained strong, increasing by 3% compared to the first half of the year. Geopolitical uncertainty was a determining factor in the market slowdown.

In Latin America, the outlook showed a combination of challenges and opportunities. During the second half of 2025, 223 transactions were completed in the region, with a total value of $22.728 billion. Although this represented a 2.2% decrease in transaction volume, the value of transactions increased by 3.8% compared to the second half of 2024, reflecting a higher valuation of strategic agreements of this nature.

The most dynamic sectors in Latin America were Energy, Mining and Utilities, Media and Telecommunications (TMT), Business and Financial Services, with 43, 42, 33, and 32 deals, respectively. Brazil led regional activity, accounting for 53.5% of the total value of the 20 most important transactions. Latin America currently accounts for approximately 4% of the global M&A market, with 233 deals announced or in progress.

The M&A market in Latin America faces significant challenges, such as low productivity, financing costs, inflationary pressures, and the impact of US tariffs, in addition to global geopolitical uncertainty. Regional stability is fragile, exacerbated by the recent US intervention in Venezuela, which has heightened perceptions of volatility in Latin American markets. However, in terms of investment opportunities, Latin America continues to offer attractive prospects in sectors linked to natural resources, particularly mining and oil and gas, which are well positioned to benefit from sustained external demand.

Despite the obstacles, the outlook for 2026 is moderately optimistic. With the possibility of greater political stability and a pro-investment environment, a recovery in merger and acquisition activity is expected. The key for investors will be to adapt to regulatory changes, manage political risks, and focus on sectors with high growth potential.