• Categories
  • Archives

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


  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Forever Tunes

Producer Ricardo Cravo Alvim thinks that marchinhas resist because they were created with the ...

Brazil Starts Teaching of Black Culture with Africa Maps in All Schools

The Special Secretariat of Policies for the Promotion of Racial Equality (SEPPIR) and the ...

Brazil’s Chancellor Goes to Ecuador as Observer

Brazil’s Minister of Foreign Relations, Celso Amorim, arrives today at Quito (Ecuador) to integrate ...

Brazilian President to Unveil Roadmap for Brazil’s Agriculture

One of the aims of the International Conference on Biofuels: Biofuels as a Vector ...

Brazilian Police Sweep 13 States in Search of Software Pirates

About 350 Brazilian federal agents swung into action today in a multi-state operation to ...

Scared of Bird Flu, Chicken Farmers in Brazil Demand Prompt Action by Government

The Brazilian Association of Chicken Exporters (ABEF), Monday, February 20, urged the federal government ...

Deputy Calls for Banning Monsanto and GM Seeds from Brazil

The presence of transgenic corn seeds in municipalities in the state of Rio Grande ...


By Brazzil Magazine According to Ary Vasconcelos, in his book Carinhoso, Etc. (História e ...

Brazilians to Be Jailed and Then Deported for Producing Fake ID’s

Two Brazilian nationals have been sentenced and ordered deported yesterday in federal court on ...

Press Association Wants Punishment for Killers of Brazilian Journalists

The IAPA (Inter American Press Association) seeks to end impunity for killers of two ...