Rio Galeão in talks to partner with new investor

The solution for the crisis faced by Rio Galeão, concessionaire of Tom Jobim International Airport in Rio de Janeiro, may involve the arrival of a new investor. Singaporean airport operator Changi Airports International (CAI), partner of Rio Galeão with Odebrecht Transport and state-owned company Infraero, has been leading the process, but talks are still in the preliminary stage. Rio Galeão negotiated in April with the government the extension of the deadline for the payment of a R$900 million installment related to its concession from June to December. The postponement was necessary because the concessionaire did not get a long-term loan from the Brazil Development Bank as expected.

Source: Valor Econômico S.A.

GE wants to play bigger role in infrastructure financing

The role of General Electric in the next round of infrastructure concessions and privatizations in Brazil may go beyond supplying industrial equipment. Vice chairman and head of global operations John Rice told that the US giant may facilitate external financing for the acquisition of transportation and energy equipment, and even work in partnership with the Brazilian Development Bank to export locomotives made in Brazil.

Source: Valor Econômico S.A.

Banks and brokerages worried about impact of BM&FBovespa-Cetip merger

Some of the major banks and brokerage firms in Brazil are concerned about market concentration and abusive pricing risks from the merger of BM&FBovespa and clearinghouse Cetip, according to documents presented to the Administrative Council for Economic Defense (Cade). To date, Banco do Brasil, Bank of America Merrill Lynch, Credit Suisse, XP Investimentos, UBS and Citi have publicly expressed some kind of concern with the consequences of the merger, though they do not oppose the transaction itself. For Edemir Pinto, president of BM&FBovespa, the concerns are not justified because the stock exchange’s bylaws have undergone a number of changes in May to avoid this kind of problem. The changes still need to be approved by the Securities and Exchange Commission of Brazil (CVM).

Source: Valor Econômico S.A.

Albaugh debuts in Brazil eyeing diversification

Albaugh, a US-based company offering generic agrichemicals, is ramping up its Brazilian presence with ambitious plans. Banking on a R$300 million investment, the company wants to grow and diversify its portfolio to grab 4% of the Brazilian market by 2021 and attain revenue of $500 million. Renato Seraphim, the company’s president in Brazil, says the strategy involves offering cheaper products. Albaugh has already operated in Brazil through subsidiary Atanor, which started out in Argentina and last year purchased Consagro Agroquímica from competitor FMC. Mr. Seraphim says he is concentrating now on consolidating Consagro and Atanor into a single company.

Source: Valor Econômico S.A.

Antitrust watchdog may block Hypermarcas deal with Reckitt Benckiser

The Administrative Council of Economic Defense (Cade) could block the sale of Hypermarcas’s condom division to British multinational Reckitt Benckiser, mainly due to market concentration risks in personal lubricants. In a report, the antitrust agency’s analysts recommended blocking the deal. The sale agreement, valued at R$675 million, was announced on January 29. Hypermarcas transferred to Reckitt, which already owns condom brand Durex and personal lubricant brand KY, its condom brands Jontex, Olla and Lovetex and lubricants Jontex and Olla. The General Superintendence of Cade believes “the transaction cannot be approved as proposed by the parties” under the risk of excessive concentration of the personal lubricant market and due to the existence of “competition concerns” in condoms. Hypermarcas declined to comment.

Source: Valor Econômico S.A.