Brazil and Paraguay signed on Tuesday an agreement to boost autos and auto parts trade between the two countries. Under the agreement, Brazil will grant free trade treatment to Paraguayan automotive products immediately and Paraguay will allow Brazilian products to enter the country with lower taxes, which are of up to 2% and will gradually decrease until free trade conditions are met by 2022.
Brazilian iron ore miner Vale SA said will boost provisions to decharacterize upstream tailings dams by $671 million after conducting engineering studies following a disaster at its Brumadinho mining site last year. The charge, to be taken against Q4 earnings, includes a series of revisions including reclassifying two dams previously categorised as having been built by the “center-line” method to the upstream structure considered to be more unstable, the company said in a regulatory filing.
Corn production in Brazil is pegged at record 100.5 million mt in 2019, according to the monthly crop survey published by national agricultural agency Companhia Nacional de Abastecimento (Conab). Corn prices in the Mato Grosso, the largest grain producer in the country, rose to Real 37.69/60 kg ($8.72/60 kg) as of the week ended February 7, up 76.5% on the year. The agency also pegged domestic consumption at 70.5 million mt against 65.2 million mt in 2018-19.
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.
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.
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.
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.
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.
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.
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.