Month: January 2020

Food retailer GPA puts petrol stations up for sale

Brazilian food retailer GPA SA has put its network of petrol stations up for sale. Sources confirmed an earlier report which said GPA may fetch up to 1 billion reais ($245 million) for the gas stations and that Banco Bradesco’s investment banking unit has the mandate. GPA currently owns 123 stores across Brazil and 72 petrol stations with the brands Ipiranga and Raizen.

Singapore sovereign fund and Pátria win largest road concession in Brazil

A consortium formed by Brazilian private equity firm Pátria Investimentos SA and Singapore’s sovereign wealth fund GIC Pte won the auction for the Piracicaba-Panorama road lot (called PiPa) in the state of Sao Paulo, Brazil’s richest. The competition encompassed 218 kilometres currently operated by the Arteris Group’s Centrovias concessionaire, whose contract expires in the first quarter of this year, as well as 1,055 kilometres operated by DER-SP.

Industrial output falls 1.2% in November and 1.1% in year-to-date

After three consecutive months of growing, Brazilian industrial production fell 1.2% in November, compared to October, and 1.7% compared to the previous year, according to the Brazilian Institute of Geography and Statistics (IBGE). This is the largest monthly decline since March (-1.4%) and the worst November since 2015 (-1.9%). Year to date, the industrial sector has fallen by 1.1%.

Central Bank reports a record $44.7 billion leaving Brazil in 2019

The outflow of dollars from the Brazilian economy exceeded its inflow by $44.77 (R$180) billion in 2019, the Central Bank (BC) reported. This is the largest net foreign exchange withdrawal since the start of the historical series in 1982. The previous record for net withdrawals had been recorded in 1999 when foreign exchange flow had turned negative at US$16.18 billion.

Bolsonaro expects $1.5 billion from sale of properties

Brazil federal government expects to raise R$6 (US$1.5) billion in 2020 from the sale of its real estate holdings. The forecast is to raise R$3 billion from the auction of 425 properties, including land, apartments, houses and stores, and the remainder from the sale of a portion of 100,000 plots of land under an outdated “forum” regime (similar to a a perpetual lease).

Record-high in beef exports in both volume and revenue in 2019

Brazil shipped 1.847 million tonnes of beef, up 12.4% from 2018, and revenue was up 15.5% to $7.59 billion, according to the Brazilian Beef Exporters Association (Abiec). Throughout 2019, China boosted exports and took the lead in purchases with 26.7% of total volume and $2.6 billion revenue. United Arab Emirates imported 71,397 tonnes of beef from Brazil in 2019, a figure 93% higher than 2018.

Bolsonaro in favour of postal service privatisation

Brazilian president would like to privatise the country’s postal service immediately, but will wait for the technical analysis by development bank BNDES, presidential spokesman Otavio Rego Barros said. He also said that Jair Bolsonaro will “make an effort” to accelerate privatisations during his tenure to reduce the size of the Brazilian state.

Automotive production up 2.3% but exports down 31.9%

Vehicle production in Brazil grew 2.3% in 2019 over the previous year, according to the manufacturers association Anfavea. Last year 2,944,962 cars, trucks and buses were manufactured, compared with 2,879,809 in 2018. Despite being the third consecutive year of production growth, the 31.9% drop in exports, especially to Argentina, was the largest since 2017. The 428,198 units sold abroad were the worst result since 2015.

Brazil’s slow recovery tests foreign investors appetite

Offshore investors pulled 4.7 billion reais ($1.2 billion) out of local equities in 2019, according to data from the stock exchange. Excluding money generated by equity sales, the outflow jumps to 44.5 billion reais, the worst since at least 2004. Although benchmark Ibovespa climbed more than 30% in 2019, the slower-than-expected pace of growth in Latin America’s largest economy discouraged foreigners. Local investors, hungry for returns as interest rates fall to record lows, have picked up the slack.