Half of Brazil’s Corporate Shares Are Bought by Foreigners, Mainly from the EU

Foreign investors were responsible for 45-50% of the transactions effectuated to acquire shares of corporations in Brazil in 2005, according to a report issued by the international consulting firm, PricewaterhouseCoopers.

The report informs that companies from the European Union led the ranking of foreign buyers, with participation in 52 of the 269 transactions. French investors were in the forefront, present in 12 of the transactions.

Raul Beer, a partner in the consulting firm, affirmed that foreign participation in the Brazilian merger market used to be greater. In 1997-98, it accounted for 2/3 of the total. He pointed out, however, that the level of foreign investor participation at that time "was not sustainable." The current level is, in his judgment, "more reasonable for the Brazilian economy."

The participation of foreign investors in the Brazilian market is seen as the result of increased confidence in the country. A proof of this, according to Beer, is the drop in the country risk premium, which, on Tuesday, January 3, attained its lowest level ever since the consulting firm, JP Morgan, began computing the index in 1994.

It ended the day at 301 points, following a signalization by the Federal Reserve Bank that the cycle of higher US interest rates may be drawing to a close.

Foreign participation in the Brazilian market is expected to continue in 2006, the specialist commented. "Despite its being an election year, I see no reason in terms of either the international or the Brazilian economy for us to return to the levels of 2002 and 2003," Beer remarked, recalling that foreign participation fell to 30-35% in the pre- and post-election periods in 2002 and 2003.

Agência Brasil

Tags:

You May Also Like

Brazil Goes to New Zealand to Learn Ecotourism

A Memorandum of Understanding signed between Brazil and New Zealand should lead to cooperation ...

Brazil Convention: Countries Far from Consensus on Traditional Knowledge

The protection of traditional knowledge is one of the main themes that have been ...

Brazil’s Lula Vows to Spend US$ 462 Million This Year in Popular Housing

Brazilian President Luiz Inácio Lula da Silva and the Mayor of the northeastern city ...

A Brazilian and His Bike Spend 3.5 Years Visiting 28 Countries in 5 Continents

Brazilian architect Argus Caruso Saturnino, 31 years of age, has already travelled to Egypt, ...

For Lula, Quest of New Markets Made Brazil Less Dependent on the US

Conquering new markets, which constitutes the core of the Brazilian government's foreign trade policy, ...

Brazilian Congress Deals with Two Conflicting Bills on Online Defamation

A law proposed by a Brazilian senator to increase by one third prison sentences ...

Gustavo Brasileiro

Brazilian Economist Kidnapped and Abused in His Own Hollywood Apartment

The Los Angeles Police Department (LAPD) finally heard Brazilian economist and journalist Gustavo Brasileiro ...

US$ 24,000: The Price to Kill an American Nun in Brazil

Amair Feijoli da Cunha, aka "Tato," a landowner in the Anapu region of the ...

Brazilian musician Vinicius Dorin

Brazil’s Jedi Return

When Hermeto Pascoal played Los Angeles in 2004, I was curious to hear live ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`