State-controlled oil multinational Petrobras and mining company Companhia Vale do Rio Doce (CVRD), both from Brazil, ended 2007 as the two largest companies in Latin America by market capitalization, according o a study just released by consulting company Economática.
According to the study, Petrobras maintained its lead and CVRD overtook Mexican telephony company America Movil to take on second place.
The study also noted that the 25 largest listed companies in Latin America had a joint market capitalization of US$ 1.072 trillion – 51.8% higher than the US$ 706.44 billion in 2006.
The number of Brazilian companies in the top 25 rose from 12 to 13. The new company in the listing is Bovespa Holding, which floated some of its shares in October. Mexico is the country with the second-highest number of companies in the list, nine companies. Argentina has two companies, Tenaris and YPF, and Chile one: Copec placed 15 with a value of 23.33 billion US dollars.
Petrobras guaranteed its top spot by increasing its market cap by 125.3%, reaching a total market value of US$ 242.72 billion and CVRD, in its turn, rose in value by 125.4% to 154.5 billion.
Along with Bovespa Holdings, three more companies – Mexican mining company GrupoMexico, Brazilian steel maker CSN (Companhia Siderúrgica Nacional) and Banco Santander Brasil – entered the list this year.
Chilean companies Endesa and Enersis and Brazilian telecoms companies Telesp (Telefônica) and TIM Participações did not make the list after being included last year.