Bankers Predict More ‘Asset Recycling’ in Brazil Amid High Rates

Brazilian companies are expected to keep fueling this year’s jump in mergers and acquisitions as executives try to reduce leverage and raise money to buy other firms amid rising interest rates.

“There will be a lot of asset recycling — companies selling non-core assets to buy core assets — and also deals to reduce leverage,” Andre Moor, head of investment banking at Banco Bradesco BBI, said in an interview. Even with expectations for slowing global growth, conditions in Brazil could still be conducive to making deals, he said.

Announced M&A involving Brazilian companies jumped 29% to $16.8 billion this ...