Canadian fund takes advantage of bargains from Lava Jato.
Foreign investment groups are taking advantage of the Brazilian economic crisis; in 2016, multinational companies spent at least R$ 119,75 billion on asset acquisitions in the country, according to a survey by the consulting firm Transactional Track Record (TTR); according to the study, mergers and acquisitions registered 1.019 transactions last year, totaling R$ 260 billion (the resources may be even higher, since several operations did not have their value disclosed); Canadian Brookfield and Chinese State Grid stand out on this list; "And these two will continue to play a leading role in consolidation in 2017," said a source in the financial market.
247 - Foreign investment groups are taking advantage of the Brazilian economic crisis. In 2016, multinational companies spent at least R$ 119,75 billion on asset acquisitions in the country, according to a survey by the consulting firm Transactional Track Record (TTR). According to the study, mergers and acquisitions totaled 1.019 transactions last year, amounting to R$ 260 billion (the figures may be even higher, as the value of several operations was not disclosed). The Canadian company Brookfield and the Chinese company State Grid stand out on this list. "And these two will continue to be the main drivers of consolidation in 2017," said a source in the financial market.
The information is from Reporting by Mônica Scaramuzzo and Renee Pereira in the State of São Paulo.
"With the crisis – around 60% of the 800 large and medium-sized companies are unable to pay the interest on their debts with their own cash flow – many businesses are expected to change hands this year, according to sources. The real estate sector is also expected to become more active."
Brookfield, which has equity stakes in six shopping malls in Brazil (it previously held a stake in 14 units), recently increased its stake in Pátio Higienópolis, in São Paulo, and does not rule out reducing its stake in other malls that are not performing well, in order to move into more profitable units.
The management company is also considering expanding its portfolio of commercial developments, according to Estado. Brookfield manages 270 triple-A commercial buildings worldwide (with an area of 37 million m²).