Month: January 2020

Petrobras readies sale of its fuel distributor unit stake

Brazil’s state-controlled oil company Petroleo Brasileiro SA has hired seven investment banks to sell a stake in its fuel distribution unit, Petrobras Distribuidora SA (BRDT3.SA). Petrobras is working to reduce its hefty debt load by selling some $20 billion-$30 billion in assets over the next five years, among them the 37.5% stake in BR Distribuidora about $3 billion.

Brazil’s current account registered a deficit of $50.7bn

Brazil’s external accounts registered a deficit of $ 50.7 billion, the worst result in the last four years, according to information published by the Central Bank. The report says that the result was caused by the trade balance, which in 2019 was $ 13.6 billion below the amount recorded in the previous year. Brazil’s trade surplus decreased from $ 53 billion in 2018 to $ 39.4 billion in 2019, reflecting retractions of 6, 3% in exports and 0.8% in imports.

Antitrust regulator gives nod to Boeing-Embraer deal

Brazil antitrust regulator Cade approved Boeing Co’s (BA.N) purchase of Embraer SA’s (EMBR3.SA) commercial aviation division without restrictions. Boeing has offered to pay $4.2 billion for 80% of Embraer’s commercial jet division. That puts it in direct competition with next-generation jets designed by Bombardier Inc (BBDb.TO) and acquired by Europe’s Airbus SE (AIR.PA). The deal is still under investigation pending regulatory approval in the European Union.

Banco do Brasil plans reforms after failed privatisation bid

Brazilian state-controlled bank Banco do Brasil SA is planning reforms to better compete with private rivals, after President Jair Bolsonaro quashed an attempt by management to fully privatise it. The plan includes changing employment rules, maintain its dividend payout ratio, and forming partnerships with financial technology and other startups.

Oi hires BofA to accelerate mobile telephony sale

Oi (OIBR4) hired Bank of America to accelerate the sale of its participation in mobile telephony. The operators Vivo, Claro and Tim were informed of the operation with which Oi expects to obtain R$15 billion ($3.5 b). The announcement comes days after Oi (OIBR3) confirmed the sale of Unitel, its subsidiary in Africa, to Sonangol, for $1 billion.

Brazil's Taurus to produce and sell guns in India

Brazilian gunmaker Taurus Armas SA has signed a joint venture with Indian steelmaker Jindal Group to produce and sell guns in India. Under the agreement, Jindal will hold a 51% stake in the venture and Taurus the remaining shares. Taurus said the JV will open a gun factory in India to produce different kinds of firearms.

Brazil adheres to foreigners agreement in public tenders

President Jair Bolsonaro said in his Tweeter account that he authorised Brazil’s entry into the Public Contracting Agreement (PA) of the World Trade Organization (WTO), which includes the United States, China, Japan and European countries. The agreement obliges its members to give equal conditions to foreign and national companies in public tenders in the areas of goods, services and infrastructure.

Jair Bolsonaro begins first official visit to India

Brasil President Jair Bolsonaro begins a four-day official visit to India. Trade between both countries during 2018-19 was worth $8.2 billion, including Indian exports of $3.8 billion and imports worth $4.4 million. Estimated 2018 Indian investments in Brazil were at $6 billion and Brazilian investments in India at $1 billion. Bilateral ties were elevated to a strategic partnership in 2006 and the two countries work closely at multilateral forums.