The acceleration of mergers and acquisitions in Argentina may be the signal for a new business cycle involving Brazilian and Chinese companies. Following the imposition of tax barriers by US President Donald Trump, the market is already beginning to see export triangulation movements to circumvent American tariffs.
In the first half of the year, there was a 62% increase in value in the M&S made in the neighboring country, while the number of deals rose 14%, according to TTR Data. Reforms promoted by the government of Javier Milei, as well as recent changes in international trade promoted by the US, can accelerate the rhythm in the second half, although traditional investors only follow the scenario.
“We already have two operations by Chinese and Brazilian companies wanting to start or buy a company in Argentina to do the US export trial,” says the leader of the department of M&A and Venture capital of DLA Piper Argentina, Antonio Arias.
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Since US President Donald Trump has announced his list of tariffs, Brazil and China have been two of the most penalized countries. Import taxes on Brazilian products – despite hundreds of exceptions – were 50%, and the cost for Chinese products was temporarily traded at 30%, after the announcement of an initial value of 145%.
But Argentina, governed by Milei, ally of President Donald Trump, about US -embarked products.
According to Arias, part of the strategy of Chinese and Brazilians investors is to buy business in Argentina to benefit part of their production and, from there, export them to the US with a smaller rate. “Of course it is not easy, there are many rules involving how to add value to the product imported by Argentina and then exported to another country to be cataloged as of Argentine origin,” he explains.
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The neighboring country had become more attractive to foreign investors for a few months when, amid initiatives to overthrow currency restrictions, Milei released the repatriation of profits from companies with operation in Argentina out of the country.
Until then, in the Investor Rule needed Central Bank authorization to bring Argentina dividends to their home country. In practice, foreign entrepreneurs did not get this authorization. With the decision, dividends distributed from January 2025 – the effect is retroactive – can be repatriated by investors with retention of 7%.
For Daniel Lasse, from the advice to Value Capital mergers and acquisitions, Argentina gains competitiveness with the changes, including Brazil. “Helps in terms of movement, both political and tariff and tax. It’s a milestone to bring investors to the country,” he says.
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Investor profile is not yet traditional funds
Arias explains that part of the growth in the pace of M&S can also be explained by the deceleration of prices in Argentina to more controlled levels since the current president’s inauguration. In December 2023, which reinforces a more curious look from investors.
Despite the optimism, traditional investors have not yet landed by weight in the country. According to Arias, the M&S market is still very centered on regional entrepreneurs and a growing interest of Special Situation funds.
“It has Argentines excited about long -term Argentine growth by buying the operations of some foreigners coming out. In Argentina, it often happens that foreigners leave the country at the wrong time,” he explains. National investors take advantage of this window to enter the business, as happened in the sale of Walmart to the Narváez group in 2020.
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Special situations, usually dedicated to investments in higher risk and potential return, are some of those who have looked more carefully to the Argentine market, according to Arias.
But there is a certain difference from the traditional strategy of this type of vehicle. Since the Argentine debt market has been closed for the past few years, Special Setation funds will often not find a indebted asset to invest. It is the country’s own economic instability that makes local companies enter their theses. “I play that just because they are in Argentina, it’s already a risky investment,” says Arias.
An exception to local entrepreneurs and special situations funds are strategic investors with special interest in the mining and oil and gas sectors. Only the purchase of $ 1.207 billion from a total of US $ 3.489 billion negotiated in the first six months of 2025.
Argentines see opportunities in Brazil
In the first six months of 2025, only Brazil and Argentina among the Latin American countries recorded growth in the number and value of M&A transactions compared to the same period of 2024. Relevant part of the flow of transactions comes from investors or Argentine companies to Brazil. There are US $ 468.77 million in external transactions registered by the neighboring country, of which US $ 308.34 million were landed on Brazilian assets.
For Daniel Lasse, from Value Capital, the current level of interest rates and political uncertainty on the eve of the 2026 presidential election has removed financial investors from new contracts in mergers and acquisitions. At least in the intermediate market, where the advisory operates, assets are relatively cheap.
“When you look at a near country like Argentina strengthening, next year Brazilian actives may be even cheaper, strengthening this scenario of Argentines buying Brazilians,” he says.
