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Thursday, January 2, 2014

Impact of presidential election on Brazil M&A deal flow seen limited, (NYSE: CS)

Mergers and acquisitions activity in Brazil is expected to accelerate early in 2014 despite risks from a presidential election and global market turmoil, with a weaker currency and cheaper valuations presenting opportunities to clinch deals. The presidential election in October could slow activity in the second half however, although private equity firms will keep scouring for favorable takeovers following a drop in the value of some firms in 2013, bankers said.Many investors expect political wrangling ahead of the election to further weigh on market confidence, which has already been rattled by the Brazilian government's erratic policy decisions and mounting state meddling in the economy in recent years.But dealmakers are hopeful the noise won't have too much of an impact on M&A activity in Brazil. A pipeline with a significant number of transactions could materialize into done deals with the proper catalyst - which could be a quiet ballot, a weaker currency or faster growth."2014 will be a challenging year but I see a solid deal pipeline waiting out there," said Fabio Mour�o, a managing director for investment banking at Credit Suisse Group in S�o Paulo. "Deals will only be concluded as long as market conditions permit, but prospects look good."

Credit Suisse Group AG (Credit Suisse) is a global financial services company. Shares of CS fell by 2.82% or $-0.875/share to $30.16. In the past year, the shares have traded as low as $24.41 and as high as $33.98. On average, 984852 shares of CS exchange hands on a given day and today's volume is recorded at 215179.