Brazilian companies investing abroad

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Brazilian companies started 2014 looking for investment opportunities overseas, after a year 2012 nearly without international investments.

According to the Brazilian Central Bank, the net outflows from Brazil for the acquisition of international shares of foreign companies was in the order of US$ 14,8 Billion in 2013, nearly two times more than in 2012 , but still below the average observed in 2010 and 2011 where the Brazilian participation was on average in the order of US$ 23,2 Billion.

These investments have been focused mainly in financial services, accounting for 47,7% of the total. In 2013 companies have been more creditworthy. BTG, a Brazilian investment bank expects that the profit of listed companies will go up by 14,1%, and will register earnings of US$ 80 Billion

KPMG points out that the number of investments done overseas in 2013 were quite concentraded in fewer sectors. According to Luis Motta, partner of KPMG, 2013 and 2012 the same number of international transactions happened, 37 in total-

The food sector, for instance, was responsible for 8 transactions, the financial sector for 3 transactions and the Information Tecnhnology for 4 transactions.

Companies might also be seeking to invest in the Andean countries, like Chile, Peru and Colombia. Despite the geography  proximity, these country have shown better economic perspectives than Brazil.The financial expansion has advanced by leaps and bounds in Latin America.

 

 

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Carlos Monteiro is a Brazilian citizen, graduated in Business Administration by the Catholic University of São Paulo. He lives in Odense, Denmark with his Danish Wife, Cathrine, and their half Danish /Brazilian daughter Ines Marie. You are very welcome to be in contact him at any time.

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