Renewables market remains attractive for mergers and acquisitions of companies

International study shows that in Brazil alone there were 24 agreements made between January and August 2023
Mercado de renováveis segue atrativo para fusões e aquisições de empresas
Photo: Freepik

O Brazil registered, between the months of January and August this year, the officialization of 24 company mergers and acquisitions linked to the sector of renewable energy, according to a survey by Redirection International.

According to the consulting company, the Brazilian potential for the generation of clean energy and the regulation of environmental assets in the internal market should further boost new mergers and acquisitions in the sector and attract more investments in renewables.

“The search for solutions to resolve climate issues is accelerating the global energy transition. In Brazil, corporations are paying more attention to ESG agenda, incorporating good environmental sustainability, social responsibility and governance practices into its activities”, said Adam Patterson, economist at Redirection International.

The professional also commented that from the point of view of mergers and acquisitions, industries and companies that present the best ESG metrics, in general, are those that attract more investors' attention.

It is no wonder that a projection of Global Market Insights, for example, points out that the sustainable economy in the world is expected to grow by more than 22% in the next ten years and reach US$ 30.9 trillion by 2032, which is equivalent to more than R$ 154 trillion at the current price.

“The race for more sustainable products and low-carbon energy opens up a universe of possibilities for companies and transactions are an interesting path to explore, both for ESG acquisitions and as an additional way of thinking about mergers and acquisitions”, he commented. Patterson.

Other sectors

The environmental agenda has gained more space in Brazil, not just in the corporate world. Public authorities are also racing against time to create mechanisms for internal regulation of environmental assets.

One of the initiatives under discussion in the National Congress, for example, is the regulation of the carbon credit market, which establishes limits on gas emissions by companies and creates new rules for the purchase and sale of credits.

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Furthermore, the Sovereign Sustainable Finance Committee, created by the Federal Government in May this year, is expected to issue the first green public bonds on the international market in September.

“Governments around the world, including Brazil, are creating their own regulations and policies to encourage sustainable practices and this is very positive for developing a favorable business environment for mergers and acquisitions, bringing more legal security to investors”, concluded Patterson.

Picture of Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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