Canada based Tuscany International Drilling Inc. has entered into a letter of intent to acquire all of the issued and outstanding shares of a private Brazilian drilling and work-over company, together with seven drilling rigs and two work-over rigs located in Brazil from an affiliate of the Company, for an aggregate cash purchase price of approximately US$52 million, announced Tuscany Wednesday.
Portugal Telecom has acquired a 25.3 per cent of Brazilian carrier Telemar Norte Leste SA or Oi. The transaction was for a consideration of 8.32 billion reais, about US$5 billion, and gives the Portuguese firm a bigger stake than it had originally planned to acquire. The purchase comes as the finalization of a long standing deal that was announced last year.
After its unsuccessful bid for a majority stake in Riversdale Mining, Australian mining giant Rio Tinto is reportedly in talks to acquire shares of Brazil’s Cia Siderurgica Nacional, reported The Australian. Rio Tinto had offered AU$3.9 billion for Riversdale, aiming to bolster its coking coal assets with an extensive deposit in Mozambique.
According to the Australian, two people familiar with the situation revealed that Rio Tinto is currently negotiating to buy shares from the Brazilian steel producer.
Bloomberg reported that Banco Santander Brasil SA is planning to increase its headcount of 122 private bankers by upwards of 20 per cent this year as Brazil's economic growth fuels demand for wealth management services. In an interview with Bloomberg, Maria Eugenia Lopez, head of Santander Brasil's private-banking unit, said the positive economic moment Brazil is experiencing is supporting an aggressive growth of the private-banking business.
GP Investments Ltd, a leading private equity firm in Latin America, announced it has invested an estimated R$168 million for a 56 per cent controlling stake in Sascar Tecnologia e Segurança Automotiva S.A. (Sascar).
Sascar is a major player in Brazil’s fast-growing mobile resource management (MRM) sector. The investment will be undertaken via GP Capital Partners V, L.P., a private equity fund managed by GP Investments V, Ltd., a wholly-owned subsidiary of GP Investments.
Telefonica, Spain’s largest telecoms operator, is mulling the investment of an estimated 24.3 billion reais, approximately US$14.7 billion, in Brazil between 2011 and 2014. The investment plans were revealed by Telefonica’s CEO Cesar Alierta, during a meeting with Brazilian President Dilma Rousseff.
Tres Coracoes Alimentos S.A., a 50 per cent joint venture of Strauss Coffee B.V. (74.9%) and Sao Miguel FIP, has signed a Letter of Intent to acquire the business of the coffee company Fino Grao, which operates mainly in the Minas Gerais province and its capital Belo Horizonte, in Brazil.
Gerresheimer AG has acquired Vedat, a major Brazilian manufacturer of pharmaceutical plastic packaging products, especially plastic closures. Gerresheimer AG is one of the leading worldwide suppliers to the pharma and healthcare industry. The investment is aimed at strengthening its pharmaceutical plastic packaging business in South America. The financial details of the transaction were not disclosed.
Reports carried by Fox Business indicated that the Export-Import Bank of the United States is to extend a $3 billion credit to finance Brazilian purchases of goods and services from American firms, announced the Export-Import Bank's chief executive.
However, a majority of the funds (approximately two-thirds) will be given to Brazilian state owned oil and gas major, Petrobras, while the rest will go into infrastructure projects for the 2014 Soccer World Cup and the 2016 Summer Olympics, all to be held in Brazil.
Avanco Resources announced it has completed an investment agreement on a transaction that provides Avanco 100% of an extensive tenement package adjacent to the Rio Verde Project. The new tenement hosts an extremely prospective 14km long copper trend, a major motivator for Avanco’s significant increase and widening of the Rio Verde drill program. Additional rigs have been sourced and are mobilizing.
The Wall Street Journal (WSJ) reported that Brazil and the U.S. unveiled a series of accords on trade and investment aimed at reducing barriers for bilateral commerce and supporting local Brazilian economic development. The bilateral trade agreements were unveiled Saturday, as US President Barack Obama embarks on his first official visit to South America.
The Wall Street Journal reported Wednesday that Brazilian billionaire Eike Batista's conglomerate is to invest as much as $40 million a day to meet growing demand for Brazilian commodities and manufactured goods in the coming years.
In an interview with the Wall Street Journal (WSJ), Batista said he plans to create a new shipping company, purchase a firm in the automation industry and partner with large global manufacturers in Brazil, among other initiatives, reported the WSJ.
Swiss firm Nestle SA is to set a new dairy processing facility in Brazil to produce the Ninho and Molico brands, announced the firm Wednesday. The new milk factory will be constructed in the state of Rio de Janeiro, Brazil. The investment is for an estimated 163 million Brazilian reals. The 20,000 m2 factory in the city of Três Rios will produce UHT and ready-to-drink (RTD) milk products by the end of the year.
In an announcement on the Sao Paolo Stock Exchange (Bovespa), US based asset management firm Manulife Asset Management (MAM) said it has acquired a 5% stake in Brazilian logistics business LLX Logística. LLX Logistica is controlled by Brazilian tycoon Eike Batista. Under the purchase agreement, Manulife bought 34.8 million shares of LLX.
The BG Group announced it is to invest $30 billion in Brazil in the next decade, as it moves to secure investments in the fast-growing reserves of crude and natural gas in Brazil. Speaking Monday, Reuters quoted BG Group chairman Robert Wilson, stating the firm was planning major investments to tap into growing oil and gas reserves in Latin America’s largest economy.
Trelleborg is to acquire a Brazilian business in the offshore oil and gas industry from a subsidiary of Veyance Technologies Inc. Through its Trelleborg Engineered Systems business area, the Swedish firm announced it has signed an agreement for the acquisition, expanding its offering in the Brazil oil and gas industry. The business focuses on specially designed oil hoses for surface and deep-sea applications for the strongly growing offshore oil and gas extraction industry in Brazil.
Italian firm Parmalat is reportedly mulling the acquisition of Brazilian dairy group Lacteos Brasil. According to reports carried by Brazilian local dailies, the Italian firm is currently in talks with the Brazilian company over a potential acquisition. Brazilian newspaper Valor Economico reported Parmalat is keen on the investment as a measure targeted at countering a takeover offer from a larger rival.
BP announced that it has agreed to acquire majority control of the Brazilian ethanol and sugar producer Companhia Nacional de Açúcar e Álcool (CNAA). The investment is expected to increase BP’s overall Brazilian production capacity to around 1.4 billion litres of ethanol equivalent per year (nine million barrels).
GE announced it has acquired Wellstream Holdings Plc, taking control of the London Stock Exchange listed firm’s operations in Niterói, Brazil. GE, through its wholly-owned subsidiary, General Electric Austria GMBH, received valid acceptances for 98.63 per cent of Wellstream’s Shares.
Quepasa Corporation, creator and operator of Quepasa.com, the popular online social network and game platform for the Latino community, has completed its acquisition of XtFt Games S/S Ltda, the owner of substantially all the assets of TechFront Desenvolvimento de Software S/S Ltda, a social game development studio based in Curitiba, Brazil, announced Quepasa Wednesday.
A conglomerate of firms is teaming up to acquire an estimated 15 per cent stake in Brazil’s rare metal minerals miner. The firms, Nippon Steel Corp, JFE, POSCO, and others are will pick up the stake for around $1.8 billion, in a move aimed at fending off China and its insatiable appetite for raw materials, reported Bloomberg.
United Phosphorus Limited (UPL) has picked up a 50 per cent stake in Sipcam Isagro Brazil (SIB) from Isagro. Sipcam Isagro Brazil is a 50/50 Joint venture between Sipcam-Oxon group (Sipcam) and Isagro. The investment will see Isagro exiting the Joint Venture while Sipcam will continue holding 50 per cent, along with UPL’s 50 per cent.
Petroleo Brasileiro, or Petrobras has agreed on a partnership that will see the state owned firm and its partners form a joint venture firm. Petrobras and five partners agreed to form create a firm that will invest an estimated $3.61 billion for the construction of a pipeline and waterway system to transport ethanol from Brazil’s sugarcane producing areas. The ethanol is mainly meant for export.
HJ Heinz announced it has clinched a deal to acquire an 80 per cent stake in Coniexpress S.A. Industrias Alimenticias, a leading Brazilian manufacturer, and maker of the Quero brand of tomato-based sauces. According to Bloomberg, Heinz, along with other U.S. food companies like Kraft Foods Inc. (KFT), is looking to boost sales abroad to counter slower growth at home.