Agribusiness mergers and acquisitions saw a 140% surge in 2024

r high in 2024, with a total of 12 transactions taking place between January and December. This marked a significant increase of 140% compared to the previous year, where only five deals were recorded. The sugar-energy and fertilizer industries emerged as the most active sectors in this surge of mergers and acquisitions.

According to a report by KPMG, the agribusiness sector in Brazil witnessed 11 transactions in 2022, while both 2021 and 2020 saw nine deals each. The remarkable growth in the fertilizer segment was anticipated due to its capital-intensive nature and susceptibility to counterparty risks, especially amidst the prevailing conditions of escalating debt restructurings in agribusiness.

Of the 12 deals completed in 2024, five involved transactions between Brazilian companies, three featured foreign buyers acquiring stakes in Brazilian firms, three showcased Brazilian investors purchasing from foreign sellers, and one deal entailed foreign investors exchanging assets in Brazil. Among the noteworthy transactions, British energy corporation BP acquired Bunge’s 50% share in their joint venture, BP Bunge Bioenergia, in June. Another significant deal was Aqua Capital’s acquisition of a controlling interest in regenerative agriculture company Solubio for R$100 million in August.

Furthermore, Israeli minerals and specialty fertilizers company ICL acquired Brazilian firm Nitro 1000 for $30 million earlier in the year. Agrion secured funding of up to $50 million in August from the Global Fund for Coral Reefs, sponsored by the Green Climate Fund (GCF), while U.S. investment firm Pegasus obtained a minority stake in the same month. Additionally, AgroGalaxy increased its ownership in agricultural inputs company Agrocat from 80% to 90% during the year.

KPMG’s findings also unveiled that Brazil witnessed a total of 1,582 mergers and acquisitions across all economic sectors in 2024, signifying a 5% rise from the preceding year. The majority of these transactions (981) involved dealings between Brazilian entities, followed by foreign investors acquiring stakes in Brazilian companies (394).

In conclusion, the agribusiness sector in Brazil experienced a notable upsurge in mergers and acquisitions in 2024, particularly in the sugar-energy and fertilizer industries. The increase in transactions reflects the dynamic landscape of the sector and its appeal to both domestic and international investors seeking opportunities in Brazil’s vibrant agribusiness market.