Market rumors: Merger and acquisition activity expected to increase in the third quarter of 2025, according to LatinFinance.

ake. The company will operate plants in 14 countries, including in Central and South America. In other deals, Brazilian family office BW Gestão de Investimentos to increase its ownership in the French glass packaging maker Verallia, while the Guatemalan conglomerate Castillo Hermanos bought the beverage company Harvest Hill in the United States and Brazil’s Granja Faria, part of the Global Eggs group, acquired Hillandale Farms in the United States.

Another significant trend driving M&A activity is the resurgence of dealmaking in Argentina, which has been on an upward trajectory as the economy recovers robustly from a six-year financial crisis. Notable deals have included Mexico-based Vista Energy’s acquisition of a 50% stake in a shale oil field in northern Patagonia from Malaysia’s Petronas for $1.5 billion, and Telecom Argentina’s purchase of the local operations of Spain’s Telefonica for $1.25 billion.

These high-value transactions have nearly doubled M&A volumes in the region so far this year, reaching $54.9 billion compared to $28.6 billion in the same period last year. International companies are increasingly looking towards Brazil for investment opportunities, with US investment firm Global Infrastructure Partners acquiring a majority stake in renewable energy company Aliança Energia from Brazilian iron ore giant Vale for approximately $1 billion. French power company Engie’s Brazilian subsidiary has also entered the market by acquiring two hydro-electric plants from Portugal’s EDP and China Three Gorges for $520 million.

According to Pedro Muzzi, co-head of M&A at Goldman Sachs in Latin America, Brazil presents lucrative opportunities for international players despite fiscal deficits and rising debt levels. The country’s steady economic growth has piqued interest from foreign entities seeking to acquire assets in various sectors. Matthew Poulter, a partner at Linklaters in São Paulo, notes that while M&A activity is not booming, there is a healthy amount of deals being made across different industries.

Mexico is also poised for an uptick in M&A deals, driven by similar factors as Brazil. Despite market volatility due to US tariffs impacting the economy, opportunities for acquisitions abound. Nicolás Estrada, CFO of Vemo, a Mexican electric vehicle leasing company, highlights that challenging economic times often unearth favorable M&A prospects compared to periods of economic prosperity.

As the third quarter progresses, Latin America and the Caribbean are gearing up for increased M&A activity fueled by cross-border investments, diversification strategies, and a resurgence of dealmaking in key markets like Argentina. With international companies eyeing opportunities in Brazil and Mexico, the region is poised to witness a dynamic landscape of mergers and acquisitions that will shape the business environment in the coming months.