Development Bank, Qualcomm raise R$240m for IoT fund

The investment fund focused on startups that develop Internet of Things (IoT) solutions, launched WEdnesday by the Brazilian Development Bank (BNDES) and Qualcomm Ventures, raised R$240 million. The “Indicator 2 IoT FIP” venture capital fund will be managed by Indicator Capital. Of the total resources in the fund, BNDES injected R$40 million (16.6%), while Qualcomm put R$45 million (18.7%). The remainder comes from five companies: Banco do Brasil, Multilaser, Motorola, Lenovo and Vivo/Telefônica Ventures — in addition to investors with smaller tickets. According to Indicator, the fund focuses on early-stage companies focused on Internet of Things (IoT) solutions and connectivity. The definition usually includes new businesses with up to three years of existence, but any company can claim the contributions. The fund will cover, above all, strategic sectors for the country, such as agriculture, health, industry 4.0, smart cities and mobility.

Source: Valor international

https://www.valor.com.br/international/briefs

Amazon launches distribution center for partner logistics

Willing to attract more sellers to its marketplace, Amazon has opened a new exclusive distribution center for the provision of complete logistics (fullfilment) and customer services to partner retailers in Brazil. The 57,000-meter space, which starts operating this week, is the company’s fifth distribution center in the city of Cajamar, in the Metropolitan Region of São Paulo, and the ninth in the country, with centers in Belo Horizonte, Brasília, Porto Alegre and Recife. According to Ricardo Pagani, Amazon’s Chief Operating Officer for Brazil, the space equivalent to five football fields begins offering services to small retailers but will not stop there. “We will not restrict ourselves to smaller partnerships or to the South and Southeast regions,” he said. The company does not report the amount invested in the new distribution center. Amazon’s estimate is to generate 450 direct jobs with the new operation.

Source: Valor international

https://www.valor.com.br/international/briefs

Senate makes business loan policy permanent

The Senate passed Tuesday a bill that makes the Program of Support to Micro and Small Businesses (Pronampe) a permanent policy. The bill may now be signed in law by President Jair Bolsonaro. Pronampe granted more than R$37.5 billion in loans in 2020, covering more than 440,000 entrepreneurs. The line of credit extended under Pronampe will correspond to up to 30% of the annual gross revenue obtained in the previous year. The estimated impact of the bill reaches R$5 billion in 2021 and zero in 2022 and 2023.

Source: Valor international

https://www.valor.com.br/international/briefs

Petrobras increases oil export through Port of Açu

Açu Petróleo, a joint venture between Prumo Logística and German company Oiltanking, has signed a contract with Petrobras that will more than double the volume of oil exported by the company in the Port of Açu terminal. The agreement, closed in April, provides for the flow of up to 240 million barrels of oil, about 300,000 barrels a day, in two years at the terminal, in São João da Barra, Rio de Janeiro. Petrobras exports part of its production from the port in northern Rio since 2019. According to Victor Bomfim, CEO of Açu Petróleo, the export of Brazilian oil has grown at a rate of 20% to 30% per year since 2018, especially sales to the East, with China as the main destination. Açu Petróleo is preparing to equip its terminal with an oil storage park and to build a rail connection to the flow network of the state of Rio. The forecast is investments of R$2.5 billion. The construction works are expected to begin in the second half of the year.

Source: Valor international

https://www.valor.com.br/international/briefs

Prices of Brazilian fruits soar amid lack of reefer container

The stranding of the ship Ever Given in the Suez Canal in March is still sending shock waves across the globe. The accident compounded the lack of reefer containers in Brazilian ports, which affected fruit shipments as 90% of them are delivered through ships. The worsening of the pandemic in recent weeks has also pushed prices of Brazilian fruits and vegetables higher on the shelves of European supermarkets. Brazilian grapes, mangoes and papaya are up to two times higher. The blockade of the Suez Canal was the “the last straw,” Enrique Garcia, head of business development at logistics company Rangel, said. “We face a complicated scenario as demand for containers is greater than we can handle. It was a perfect storm.” The company expects container supply to return to normality later this year or at the beginning of next year.

Source: Valor international

https://www.valor.com.br/international/briefs

Bosch bets on ethanol in electric car

The CEO of Bosch in Latin America, Besaliel Botelho, told Valor Monday that Brazil can again have a prominent role in the development of a new energy solution, the hydrogen fuel cell. Separating hydrogen from ethanol to produce electricity by chemical process, within the vehicle itself, avoids the need to charge the hydrogen cylinder and the use of batteries. The Brazilian prominence cited by Mr. Botelho refers to the so-called “flex” technology, which allowed the use of ethanol, gasoline or the mixture of the two fuels in the same tank. Bosch has a global plan to invest €1 billion in the hydrogen project between 2021 and 2024. For Mr. Botelho, in Brazil, while the hydrogen from ethanol technology does not advance, it is possible to compensate for the lost time in the development of the electric car through the intensification in the production of hybrids that can be fueled with ethanol. It is necessary to think of a “bridge,” he said, to insert Brazil in the world context that accelerates the electrification of transport.

Source: Valor international

https://www.valor.com.br/international/briefs

CSN Cimentos, InterCement rush to list shares on B3

The Brazilian cement industry will hit the stock exchange – after a sales growth of 11% last year, at the end of a four-year crisis. On one side, further ahead, is InterCement, controlled by Mover Participações (former Camargo Corrêa). On the other, is CSN Cimentos, a company created by Companhia Siderúrgica Nacional (CSN) in February to manage the group’s cement division, a business created in 2009. On the other hand, Irish giant CRH decided to leave the country. And two weeks ago, Franco-Swiss LafargeHocim communicated that it will sell all its operations in the country (10 plants and other units), valued at least at $1 billion.

Source: Valor international

https://www.valor.com.br/international/briefs

Brazil buys another 100 million doses of Pfizer’s vaccine

The Ministry of Health made official Thursday the acquisition of a second batch with 100 million doses of Pfizer’s Covid-19 vaccine. With the deal, worth R$6.6 billion, the immunizer produced by the American company may become the second (or even the first) most relevant in the country in number of applications. Sources say the contract foresees that all the vaccines will be delivered until the end of this year, totaling 200 million jabs. This way, Brazil will become Pfizer’s second-largest partner in the world, only behind the United States. The announcement comes one day after President Jair Bolsonaro suggested that the coronavirus would be a China’s product of biological warfare. Currently, Chinese’s Coronavac is the most used vaccine in Brazil.

Source: Valor international

https://www.valor.com.br/international/briefs

M&A to grow in healthcare, retail and finance, Bradesco BBI says

Consolidation should warm the M&A market this year. Felipe Thut, Bradesco BBI’s Managing Director, says these transactions will grow this year, above all, because of the pandemic crisis. For him, the healthcare, retail and financial industries will continue to see the main consolidation moves in the coming months. Last year, M&A operations involved about $40 billion in Brazil, with 340 transactions. Mr. Thut does not yet have an estimate of how the sector should close this year, but predicts the figure to be higher than in 2020. The first-quarter results and the advance of vaccination in the country are also factors that should play in a more vigorous resumption of capital market operations, such IPOs and secondary offerings. “If it were not for the pandemic, the value of transactions last year would have exceeded R$129 billion, with 57 offerings. Bradesco alone has 70 filings. We have today an estimate of R$160 billion, with chances of being much higher.”

Source: Valor international

https://www.valor.com.br/international/briefs

Klabin now plans to invest R$13bn in Paraná

Klabin defined on Wednesday the type of paper it will produce in the second machine at the Puma II project and raised to R$12.9 billion the total investment in the expansion at Ortigueira (Paraná), an increase of R$2.6 billion in relation to the initial budget. It will be a new paperboard machine and not another kraftliner machine like the first one, allowing the company to enter the group of the ten largest virgin fiber board manufacturers in the world. Last year, cardboard consumption in Brazil rose by 6.5%.

Source: Valor international

https://www.valor.com.br/international/briefs