President of Azul Linhas Aéreas, John Rodgerson, announced the purchase of 75 Embraer aircraft during a meeting with Brazil President, Jair Bolsonaro. With the expansion of the air fleet and the purchase of regional carrier Two Flex for R$123 million, which will add 36 new national destinations, Azul plans to reach 200 national destinations in the next three or four years.
After more than tripling last year, share offerings activity is expected to accelerate, with some bankers predicting that offerings may reach up to 200 billion reais ($48 billion). Brazilian stock sales were equivalent to 85% of all equity activity in Latin America in 2019, while Brazil’s gross domestic product is only about a third of the wider region’s.
Sao Paulo-based beef giant Minerva SA is withdrawing a planned IPO of Athena Foods in Chile amid market turmoil and economic uncertainties in Argentina. A trading debut in Chile was part of Minerva’s strategy to lower debt. Instead, the company opted to sell shares in Brazil.
Petroleo Brasileiro has put up for sale its entire stake in the Golfinho and Camarupim deepwater clusters in the Espírito Santo basin. Petrobras holds 100% interest in both concessions, with the exception of exploratory block BM-ES-23, in Golfinho, where it owns 65%. Brazil’s state-run oil company has been selling assets in order to lower its debt.
Brazilian mergers and acquisitions of companies moved R$ 307 billion ($73.52 billion) in 2019, an increase of 58.6% compared to the previous year. According to a Transactional Track Record (TTR) survey, 1,448 transactions involving Brazilian companies were recorded over the past year. This number has been growing gradually since 2016, and experts forecast to continue in 2020.
President Jair Bolsonaro decided to end Brazil’s membership to the Community of Latin American and Caribbean States (Celac).Government sources said that the decision was due, among other reasons, to the presence of dictatorships in the block, such as Cuba and Venezuela.The new position was communicated last Tuesday to the members.
President Jair Bolsonaro is set to visit India next week, aiming to boost trade with the Asian nation that has been expanding around 7% a year over the past decade and set to overtake China in terms of population in the next decade. Brazil sees a chance to increase its $7 billion in annual bilateral trade with India to $25 billion in the next few years.
Exports from Pernambuco fell by 30.3% in 2019 compared to 2018. Last year, the Brazilian state sold $1.3 billion, compared with $2 billion in 2018. The drop was steep compared to the 6,4% in national exports. The main reason would be the dependence of the local market on Argentina, the main international customer for Pernambuco products.
Brazilian sugar mills are considering increasing their raw sweetener output at the expense of ethanol for automobile fuels after sugar futures surged to a two-year high this week, according to analysts. Raw sugar futures for March delivery in New York have climbed 9.1% since Jan. 2. Only 34% of the cane was used this season to produce the sweetener with the rest going to ethanol as demand and prices for the biofuel have increased.
Brazilian government has welcomed the United States’ change of stance to support Brazil’s bid to join the Organization for Economic Cooperation and Development (OECD) ahead of Argentina. The decision shows the construction of a “solid partnership” in the Brazil-United States relationship,” capable of generating short, medium and long term” results, Foreign Minister Ernesto Araújo published in a social network.