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20 March 2025in Jornal de Negócios ‘Uncertainty affects mergers and acquisitions, but the international climate is more of a concern’

A scenario of political change can jeopardise the stability and options of economic agents. And although the impact on corporate legal advice may be contained, experts contacted by Negócios emphasise that political and legislative unpredictability leads to caution in the market and may postpone M&A operations.

‘When politics becomes unpredictable, the market usually responds with caution,’ emphasises Bruno Melo Alves, partner at Melo Alves. The specialist points out that ‘although the economic indicators appear to be robust and there is a generalised public opinion that the current political crisis will have no impact on the economy (or, if it does, it will be marginal)’, the great uncertainty about the next political scenario, warns the same lawyer, ‘has the potential to lead to the postponement of investment decisions by some entrepreneurs and, consequently, to cool or postpone M&A operations in the months that follow’.