Category: Business

Information regarding the business sector

Carrefour Brasil in talks to acquire rival Makro

Carrefour Brasil (CRFB3.SA) said in a filing it is in talks to acquire stores operated by rival retail chain Makro by an undisclosed figure. However, the company denied reports by Brazilian media last week saying that it was acquiring Makro’s Brazilian subsidiary for 5 billion real ($1.16 billion), and said the deal value would be much lower.

Brazil MVNO market grows to 1.2 mn lines, 80% are M2M

The number of lines at MVNOs in Brazil grew 128 percent per year, on average, in the last three years, reaching 1.2 million in 2019. M2M terminals accounted for 80 percent of the total. According to data published by Teleco, Brazil has 24 MVNOs, of which eight are authorized. Of note, Arquia (Datora), Safra and Surf Telecom are the largest, and also operating are America Net and Vecto. 

USA removes Brazil from the list of developing countries

The U.S. Department of Commerce reported its decision to remove Brazil from the list of developing countries, which may restrict trade benefits granted to nations in this category. Some practical consequences for Brazil may include the end of the unilateral exemption of export tariffs by the Generalized System of Preferences (GSP), the right to partial trade agreements with other developing countries, and part of the loans from the World Bank.

Petrobras oil production in Brazil grows 16.5% in Q4

Brazil’s Petrobras hit a new production record in Q4 of ca. 2.4 million barrels of oil equivalent per day (boepd), which means an increase of 16.5% on average production of oil and liquefied natural gas (LNG) compared to the same period in 2018. Compared to the third quarter, there was a 5.7% increase. The improvement in performance was largely due to the ramp-up of platforms in the prolific pre-salt formation, says the company’s report.

BB Seguridade reports 35% rise in Q4 adjusted net income

Brazilian insurance company BB Seguridade SA reported on Monday an almost 35% jump in its Q4 adjusted net income compared with the same period a year ago. Its securities filing says that its quarterly recurring net profit, which excludes one-off items such as proceeds from the sale of its stake in reinsurer IRB Brasil RE, came at 1.133 billion reais ($262.24 million). For 2020, the company expects a growth between 7% to 13% in operating result.

COFCO International changes Brazil head

Chinese-owned grain trader COFCO International has added up Tony Tian, Helen Song and Alfonso Romero were to its executive committee, expanding the number of members to seven, and appointed Philip Xu as new managing director Brazil, replacing Valmor Schaffer. Tian will take on the additional role of Managing Director Regions for Brazil and North America and is to relocate from Geneva to Sao Paulo.

Centauro shares up 12% after $212 mn Nike deal

Grupo SBF, the formal name of Brazil’s sports goods chain Centauro, closed a $212 million deal to take over Nike operations in the country. Centauro’s shares (CNTO3.SA) rose more than 10% on Thursday mid-morning trading in Sao Paulo after the announcement. The deal, which will add 24 Nikes stores to the current Centauro’s 200 stores, still needs to be approved by Brazilian antitrust watchdog CADE.

Fashion retailer Lojas Renner posts 17% jump in Q4 profit

Brazilian fashion retailer Lojas Renner SA reported an almost 17% jump in its fourth-quarter net income, as lower taxes and stronger operating results helped the company improve its margins. In a securities filing, the company said its quarterly net profit hit 513 million reais ($119.80 million) compared with 439.8 million reais a year earlier.

BNDES raises $5.2 bn selling Petrobras stake

Brazil’s development bank BNDES sold on Wednesday $5.2 billion in common shares it owned in state-controlled oil company Petroleo Brasileiro SA (PETR4.SA), the largest Petrobras offering in a decade. BNDES will send part of the profits to Brazil’s Treasury as dividends. The sale of Petrobras shares is the largest divestiture so far of the R$110 billion stock portfolio owned by the development bank.

Volvo to invest $ 237mn in Brazil

Swedish truck and bus manufacturer Volvo announced an investment of R$ 1 billion ($237 million) in Brazil in the period between 2020 and 2023 for research and development of products and services, including construction of equipment and marine engines. Brazil was the second market of the group in the world in 2019 when heavy truck sales grew 58%, light heavy 55.5%, buses 73% and exports, mainly to Colombia and Chile, went up 77%.