M&A Expected to Pick Up

Bankers generally are bullish across the board for M&A in all sectors and most countries. With an investment grade nearing for Brazil, there will be a wave of acquisitions, with Brazilians firms buying local or international companies, Pedro Guimarães, director at UBS Pactual in Brazil, tells LatinFinance. He expects high grade Brazil in late 2008 or early 2009. He also expects a string of sizable IPOs from Brazilian insurance companies as a result of new regulation calling for greater capital base. Next year will be the best moment in Brazilian history for IPOs, he predicts. “It will be the first time that we will manage to grow with the capital markets effectively as an option for investment in the economy,” says Guimarães. UBS Pactual is a dominant player in the Brazilian equity market, with more than 20% market share, according to Dealogic.