Tag Archives: brazil investments

Chemical Firm to Invest in Brazil Expansion

Norwegian chemical firm Yara International is to invest $275m in the expansion and modernisation of its Rio Grande fertiliser plant in Southern Brazil.

The expansion, set for completion in 2020, is expected to create one of the most modern fertiliser sites in the Americas and will benefit greatly from the countries growing agricultural industry.

Yara president and CEO Svein Tore Holsether said: “This expansion represents another step in our Brazil growth strategy, further establishing our position in Brazil as a long-term industry player, committed to developing and investing in Brazilian agribusiness.

The project will double the site’s current 800,000t annual fertiliser production and blending capacity, as well as improve health, environment, safety and quality performance by substantially lowering emissions required by legislation.

Tore Holsether further noted: “The project is possible thanks to the acquisition of Bunge Fertilizantes in 2013, creating further consolidation synergies through optimization, automation and de-bottlenecking of the combined assets.”

As part of the expansion, the scope of work will include new warehouses, new acidulation and granulation lines, fully automated blending and bagging equipment for small (50kg) and big (1t) bags, a boiler for steam production, a wastewater treatment plant and rest areas for truck drivers.

The expanded facility is expected to create more than a thousand direct and a further three to four thousand indirect employment opportunities.

Source: Chemicals Technology

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Brazil-China Partnership

Foreign Investors are behind most Brazil acquisitions

Foreign investors were behind the majority of business acquisitions in Brazil in 2015, beating domestic investors for the first time since 2002, according to a report published Wednesday by the local media.

Foreign investors accounted for 51 percent of acquisitions and capital increases last year, up from 38 percent in 2014, according to the report, which was released by PwC’s Brazilian unit and published by the daily Folha de S. Paulo.

That percentage is expected to rise to 55 percent in 2016.

The depreciation of the real against the dollar and the difficulties some sectors are facing amid a severe economic crisis – with gross domestic product (GDP) contracting for three straight quarters and inflation well above the targeted level – have facilitated the arrival of foreign companies and investors.

“Foreigners are going to remain interested in Brazil while domestic companies will continue to have financing difficulties,” Rogerio Gollo, a senior partner at PwC Brazil, said.
The sectors most likely to attract foreign investment in 2016 are information technology, trade, agribusiness and renewable energies, Gollo said.

A total of 672 acquisitions of majority or minority stakes in Brazil-based companies took place last year, with foreign investors accounting for more than half of those transactions.
A “drastic reduction” in acquisitions by domestic investors has occurred since July amid a worsening political crisis that could even lead to President Dilma Rousseff’s impeachment, Gollo said.

Source Latino Fox News

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Shell Brazil

Shell Brazil output to quadruple by 2020

Europe’s largest oil company Royal Dutch Shell, is hoping to quadruple oil and gas output in Brazil by the end of 2020.

Following Shell’s $52 billion takeover of BG Group Plc in January, the Anglo-Dutch company has announced its focus on expanding operations in liquefied natural gas (LNG) and deep-water oil production in Brazil’s offshore.

Since adding BG’s large Brazilian offshore assets, Shell’s local output rose sixfold to around 240,000 barrels of oil and natural gas equivalent a day (boepd), or 13 percent of its total of 1.8 million boepd.

These figures are expected to quadruple its Brazilian output by the end of the decade, boosting production to nearly 1 million boepd.

Shell is already Brazil’s no.2 producer after state-led Petrobras and the world’s largest trader of LNG.

While it sells LNG to Petrobras for the Brazilian market, Van Beurden and his Brazilian deputy, Andre Araujo, declined to say if they want to buy Petrobras’ natural gas assets, some of which are for sale.

Brazil’s importance to Shell is expected to increase as it moves ahead with giant subsalt projects such as Libra, which it is developing with Petrobras, France’s Total SA, China’s CNOOC, and CNPC.

Subsalt refers to large hydrocarbon resources trapped deep beneath the seabed by a layer of mineral salts. Libra may hold as much as 12 billion barrels of recoverable oil, according to Brazil’s government.

Shell faces serious challenges in Brazil. Oil prices have plunged since the BG deal was announced a year ago. Petrobras, Shell’s principal partner in the country, is in serious financial and legal difficulty after the price drop and a massive price-fixing, bribery and kickback scandal.

Van Beurden, though, said subsalt areas should be able to break even at oil prices forecast for this year, without saying what those prices might be.

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BOCOM in Brazil

China’s BOCOM Seals Deal for Brazil’s Banco BBM

China’s Bank of Communications (BOCOM), the country’s fifth-largest commercial bank by assets, has agreed to buy a controlling stake in Brazil’s Banco BBM, the latest in a string of overseas acquisitions by Chinese banks and brokerages.

BOCOM said it would pay R$525m ($173m) in cash for an 80 per cent stake in unlisted Banco BBM, based on the bank’s book value of R$576m. BOCOM had assets totalling $1.1tn at the end of March.

Although it is the first overseas acquisition for BOCOM, Chinese financial institutions are not opposed to snapping up assets abroad, having spent a total of $4.8bn on 30 overseas deals in 2014, following $5.1bn in deals in 2013.

Most have aimed at positioning Chinese lenders to service Chinese corporate clients overseas. China is Brazil’s largest trading partner and a major importer of Brazilian soy-beans and iron ore.

The Bocom deal came as Li Keqiang, Chinese premier, met with Brazil’s President Dilma Rousseff as part of a tour of Brazil, Colombia, Peru and Chile. At a joint press conference, Mr Li and Ms Rousseff announced more than $53bn worth of trade and investment between the two countries.

Source: Wall Street Journal

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reasons to invest in Brazil

20 Reasons to Invest in Brazil – Part 5

Providing our readers with the final series of our 5 part Blog on ’20 reasons to invest in Brazil’… Click here to view :

20 Reasons to Invest – Part 1

20 Reasons to Invest – Part 2

20 Reasons to Invest – Part 3 

20 Reasons to Invest – Part 4 

17) Olympic Games – We all recognise Brazil as a nation of sport lovers especially when it comes to football. This was evident at the FIFA World Cup held this year when the world was introduced to a new up and coming Brazil. Countries from all over the world revelled in its friendly, welcoming atmosphere with many spectators expressing their desire to return at some stage in the future.

The Summer Olympic and Paralympic Games announced Rio de Janeiro as its host during the 121st IOC Session on October 2nd 2009 and will prepare its opening ceremony for 10,500 athletes from 204 countries on the 5th August 2016. Once again the world’s media will descend on Brazil having an affect not only on tourism but also on property prices as more and more people want to share in Brazil’s growth. From now until then the opportunity still exists for investors to buy into this economy.

18) North East Brazil – In Brazil not all locations are the same. Developed and well known cities such as Rio de Janeiro and Sao Paulo now have some of the most expensive real estate in the southern hemisphere having already undergone immense growth. Developing cities in the north east region are now catching up leading to acceleration in demand and pricing due to huge economic development, tourism and infrastructure programmes. Leading the way in this growth is the city of João Pessoa the capital city of the state of Paraiba. Although prices are increase rapidly, property prices in this area are still far less than places such as Rio de Janeiro and Sao Paulo but we think it’s only a matter of time before house prices the north east catch up with the south providing even more reasons to Invest in Brazil.

19) Tambaba Country Club Resort –  Seen as a unique secure condominium covering 150 hectares, Tambaba Country Club Resort stands out from the rest due its design, size and what will be the largest aquatic pool in the region at 2,500 m². Situated just south of the city of João Pessoa, Tambaba embraces the growth contained within this part of north east Brazil. With over 60% of purchases made by Brazilians, Tambaba offers the investor an opportunity to invest safely within one of the fastest growing areas of Brazil but at a fraction of the price. As demand grows developments like Tambaba will become more and more popular, not just because of its facilities but being so close to range of amenities including the vibrant city of Joao Pessoa itself and also being only 5 minutes from some of the most spectacular beaches.

20) Pueblo Do Mar Designed for the demand of affordable middle class housing, Pueblo Do Mar was launched to the UK and international market in January 2013. Located close to Tambaba Country Club Resort, Pueblo do Mar is much smaller with 406 land plots available. Sales to date a total 320 land plots.

Our partners in Brazil launched this to the local market in July 2013 selling just under 100 plots in the first 6 months, proving that the locals really do have an appetite for middle class residential housing.

With Brazilians now being able to borrow up to 80% from leading banks such as Santander, Bradesco & HSBC, this can only enhance the opportunity of selling your investment and making a profit whether it be land alone or a built residential property.

The middle class now represents 53% of the active population and is rapidly rising. With the minimum wage more than doubling in the last 6 years, this expanding mass consumer market is also fuelling residential housing demand with a defined need for over 7 million new homes by end of 2015. The Brazilian government has suggested a need for more than 20 million new homes by 2025.

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CPPIB to Invest $396m in Brazil Commercial Property

The Canada Pension Plan Investment Board (CPPIB) have released a statement on their plans to invest 1 billion Brazillian Reais in commercial property in Brazil. The statement comes just a few months after the Toronto-based pension fund opened an office in São Paulo.

As one of the world’s biggest pension funds, CPPIB has more than $212 billion worth of assets under its belt, primarily focusing on investments opportunities in Brazil, Chile, Columbia, Mexico and Peru.

The investments include the purchase of warehouses, land and stakes in development projects in the logistics and retailing industries, adding to the fund’s portfolio of more than 100 properties in Latin America’s largest economy worth over $1.8 billion.

CPPIB will pay R$ 507 million for 30% in a joint venture with Singapore’s Global Logistic Properties Ltd and another R$ 231 million committed to GLP Brazil Development Partners I, a real estate investment vehicle in which Global Logistic Properties has a 40% stake and CPPIB a 39.6% stake.

The company also pledged to spend R$ 159 million to buy a 25% stake in a São Paulo logistics project alongside Cyrela Commercial Properties SA.

“Brazil remains a key market for CPPIB over the long term and we will continue to seek attractive investment opportunities through our existing partnerships with top-tier local partners while we continue to build our local presence in Sao Paulo,” Peter Ballon, head of CPPIB’s real estate investment in the Americas, said in the statement.

In total CPPIB has committed $5.6 billion to investments in Latin America.

Source: Reuters 

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fighter jets to Brazil

Saab $5.4b Order to Sell Fighter Jets to Brazil

Swedish aerospace firm Saab has finalised one of the most valuable defence contracts in an emerging market confirming the sale of 36 fighter jets to Brazil for the value of $5.4 billion.

A statement from Saab confirmed that the total order value for the NG Gripen jets was around 39.3 billion Swedish Crowns ($5.4 billion) and are to be delivered between 2019 and 2024.

In December 2013, the company won a long bidding war against France’s Dassault Aviation SA and Chicago based Boeing Co for the delivery of new fighter jets for the Brazilian air force in collaboration with local aircraft maker Embraer.

“Since then all parties have negotiated to finalize a contract. Today’s announcement marks the successful conclusion of that process,” Saab said.

Embraer will have a leading role in the program and undertake an extensive share of work in the production and delivery of the planes.

“We see great opportunities to continue to work with Brazil and Embraer on different markets,” Chief Executive Håkan Buskhe told The Wall Street Journal.

Saab stated that this deal with an “emerging superpower” such as Brazil has dramatically increased Saab’s opportunity to do business worldwide, not least in South America.

Shares in Saab jumped on news of the deal to trade at their highest level in more than a month. At around 1200 GMT, they were up 4.2% at SEK189.50.

Source: The Wall Street Journal and Reuters  

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