September 2025 - Page 2 of 4 - Murray Advogados

Brazil will need fiscal adjustment after 2026, Goldman Sachs says

Whoever wins next year’s election will have to persuade voters that fixing public finances is necessary, says Alberto Ramos, head of Latin America economic research at the investment bank

Convincing Brazilians that a fiscal adjustment is necessary after the 2026 election won’t be an easy task for any incoming president, given the country’s “reasonably good” economic growth over the past three years, fueled, in the words of Goldman Sachs, by “fiscal steroids.”

“The essence of populism is this short-term sense of well-being achieved through mechanisms that are unsustainable over time. The bill comes later,” said Alberto Ramos, head of Latin America economic research at Goldman Sachs. “What worries me is that after the election, whoever wins will need to push for a fiscal adjustment when the population doesn’t feel there’s a problem. Growth has been good, unemployment low, wages rising. I don’t think people will buy into the idea that we need a deep fiscal adjustment.”

Mr. Ramos contrasted Brazil’s situation with Argentina’s, where President Javier Milei won office on a platform of tough reforms at a time when the economy was already in deep trouble, facing contraction, soaring inflation, and rapid impoverishment.

“He pushed through a fiscal adjustment equivalent to 6 percentage points of GDP in an economy that also had very rigid spending, and was already suffering significantly. But it was clear to most of the population that the Kirchnerist model had failed—economically, socially, and politically,” Mr. Ramos said.

He believes part of the recent improvement in Brazilian asset prices stems from investor expectations that a new administration will take office in 2027, and bring with it a shift in economic policy.

“No matter who wins, a fiscal adjustment will be inevitable, and it won’t be easy,” he said. “If President Lula is reelected, fiscal realities will impose tighter constraints, otherwise, things won’t end well. A more conservative candidate would probably be more inclined to implement that adjustment. But my question is: Is Brazil ready?,” Mr. Ramos asked, adding that he’s not fully convinced about a scenario in which the current opposition wins either.

Mr. Ramos said the necessary overhaul would include loosening the rigid structure of public spending: changing laws that tie budget allocations to health and education, revising the rule that mandates real increases to the minimum wage, and reviewing other legislation that hardwires spending.

“We already know the path to take, if there’s political will,” he said.

Political balance

One hurdle, however, is that “Congress is not exactly the guardian of fiscal orthodoxy,” Mr. Ramos added. “The real fight between Congress and the government is just about who gets credit for the spending. The political balance may not be one that allows these reforms—some of which are constitutional—to pass. In Argentina, the crisis helped get them through. That’s not our situation, thankfully, but if we keep delaying, we may hit a breaking point that forces a much more painful and destabilizing adjustment.”

Brazil’s fiscal issues aren’t new, but have worsened recently, leaving policymakers with less room to maneuver, he said. One example: the government has already raised taxes without improving fiscal fundamentals.

“A fiscal adjustment that relies on tax hikes is already a poor-quality fix, but even so, how would society react, after four years of rising taxes?” Mr. Ramos asked. “We’ve used up our ammo without defeating the enemy. We raised taxes to spend more, not to improve the primary balance.”

Adjusting for the economic cycle, Brazil’s fiscal picture is worse than the headline numbers suggest, he said.

“When the economy was booming, the government doubled down and injected even more liquidity, overheating the system. The best time to make adjustments is when the economy is doing well. Now, it’s slowing, and they want to reverse the fiscal impulse. They should’ve held back earlier, taken advantage of the revenue from growth to build a better primary result.”

Mr. Ramos said Brazil’s economy is now slowing because it has hit “capacity constraints.” He believes the recent GDP growth of 3% or more is above the country’s potential. On top of that, monetary policy remains tight.

“But if someone arrived from another planet and saw Brazil with 15% nominal interest rates and 10% real rates, they’d assume the country is in deep recession. And it’s not—it’s just slowing, because there are credit policies, quasi-fiscal programs. The effectiveness of monetary policy has been undermined by fiscal activism,” he said.

Letting the economy slow is necessary to bring down inflation and eventually lower both inflation and interest rates, Mr. Ramos added.

“If no action is taken, that’s the path we’re on—and it’s not one we should resist, because we’re not facing an economic collapse.”

He said he doesn’t expect a “fiscal disaster in 2026,” despite it being an election year. “But we should be running a surplus,” he said. “This government’s view, which I don’t share, that the economy only grows through fiscal stimulus, paired with an upcoming election, means that the current slowdown is probably not deep enough to allow monetary policy to shift to a neutral stance.”

Even if there is room for the Central Bank to begin cutting rates in December, he said, interest rates will likely remain tight through the end of 2026.

Mr. Ramos acknowledged some improvement in headline inflation but noted that service inflation “is still far from good.” Currency appreciation and lower prices for commodities and food have helped, he said, but given those factors, “Inflation should be around 2%.”

“That’s not the case. The target is 3%, and we’ve been above it for many years. The Central Bank’s projections don’t even place 3% within the relevant forecast horizon. It’s a tough battle that requires a completely different fiscal approach from what we’ve seen over the past four years.”

“The difference between medicine and poison is dosage,” he added. “Monetary policy is the medicine, but its dosage can become toxic because of fiscal policy. Fiscal policy needs to take over the burden that monetary policy is carrying right now.”

*By Anaïs Fernandes and Eduardo Belo — São Paulo

Source: Valor International

https://valorinternational.globo.com/

24 de September de 2025/by Gelcy Bueno

Murray News

Lula, Trump expected to meet virtually

Trump overture fires up Brazilian markets; Brazil prepared to offer U.S. president deals on strategic minerals and big tech regulation he can claim as victories

U.S. President Donald Trump surprised delegates at the United Nations General Assembly on Tuesday by proposing a meeting with Brazilian President Luiz Inácio Lula da Silva next week. The encounter is expected to take place virtually. The two leaders briefly spoke in the halls of the UN headquarters in New York and, according to the Republican, there was “excellent chemistry” between them.

The announcement of a Lula-Trump meeting had been eagerly awaited by Brazilian and American business leaders, as well as by Brazil’s diplomatic corps. Among Brazilian diplomats, the view is that the Lula administration could have greater opportunities to negotiate tariff reductions if it puts forward proposals that Mr. Trump could tout as victories. These could include future partnerships involving U.S. research and investment in Brazil’s critical minerals sector or regulations not too restrictive for big tech companies and their social media platforms operating in Brazil. The real strengthened against the dollar while Brazilian markets rallied on Tuesday upon news of the overture.

“I was walking in and the leader of Brazil was walking out. I saw him and he saw me and we embraced,” Mr. Trump said. “But we actually agreed that we would meet next week. We didn’t have much time to talk, about 20 seconds.” He added that Lula seemed like a “very nice man.”

According to Brazilian Foreign Minister Mauro Vieira, the meeting will likely be virtual. “It could also happen by phone call or videoconference, because unfortunately the president is very busy, with a full agenda, so perhaps an in-person meeting will not be possible, but they will meet in some way,” he said.

Even so, in his speech at the UN, Mr. Trump once again leveled indirect criticism at Brazil, particularly its judiciary. He said the country was marked by “censorship, repression, weaponization, judicial corruption and targeting of political critics,” in reference to the convictions of former President Jair Bolsonaro and close allies over the January 8, 2023 coup attempt.

“Brazil now faces heavy tariffs in response to its unprecedented efforts to interfere with the rights and freedoms of our American citizens and others, with censorship, repression, weaponization, judicial corruption, and targeting of political critics in the United States,” Mr. Trump said.

Mr. Trump’s friendly remarks toward Mr. Lula caught presidential aides in Brasília off guard. Despite the praise and the prospect of a potential meeting next week, Valor learned that such an outcome had been considered “unlikely” by government insiders prior to the trip. In recent weeks, Mr. Lula’s advisers had even sought to lower expectations that the event in New York could provide any exchange between the two presidents.

Veteran Brazilian diplomats familiar with the UN Assembly noted that outgoing speakers usually exit the stage from the opposite side of where the next head of state enters, a protocol designed to avoid encounters—even though it was known Mr. Trump would speak immediately after Mr. Lula.

Mr. Lula’s aides had also privately suggested that Mr. Trump’s tight security arrangements could pose another obstacle to any personal exchange with the Brazilian president at the multilateral venue.

The brief conversation between Mr. Lula and Mr. Trump in the UN corridors was positive and spontaneous, said Amanda Robertson, spokesperson for the U.S. State Department, according to GloboNews. Ms. Robertson confirmed the two hugged. “It really was a spontaneous moment. It seems the backstage meeting was unplanned. President Lula was leaving and Trump was entering, and in that hallway they had a few moments to speak. It was a short, spontaneous, and good conversation.”

According to Ms. Robertson, Mr. Trump said he liked Mr. Lula but also told the Brazilian president that razil “is doing harm and will continue to do harm.”

*By Renan Truffi, Sofia Aguiar, Rafael Vazquez and Marcos de Moura and Souza — Brasília and New York

Source: Valor International

https://valorinternational.globo.com/

24 de September de 2025/by Gelcy Bueno

Murray News

Bioeconomy seen as option to save Amazon

Experts defend economic potential of strategy, with job and income generation, but warn it is not only solution nor will it solve problems immediately

The bioeconomy has significant commercial and socioeconomic development potential for Brazil, especially in areas where environmental preservation has become strategic in the face of the effects of climate change. However, according to experts and producers interviewed by Valor, there is a clear awareness that this is not a silver bullet, although it is a path to be followed not out of utopia, but out of pragmatism.

“When we support and promote the bioeconomy, we are not proposing an immediate substitution of food and goods production in the traditional way we have today, but a gradual transition. The bioeconomy is not the silver bullet that will solve all problems overnight, but it has enormous potential to generate jobs and income, especially for Brazil,” says Pedro Zanetti, a specialist in land use transition, food systems and bioeconomy at the Climate and Society Institute (iCS).

Mr. Zanetti comments that, amid global efforts to decarbonize the economy, Brazil is still behind in the competitiveness of its bioeconomy, although it is one of the countries with the greatest potential for housing approximately 12% of the world’s forest cover, including most of the Amazon.

“The size of the global market for forest-compatible products is approximately $175 billion. But, considering the 64 products the Amazon already exports, Brazilian participation is only 0.2% or $300 million per year. And the Amazon alone represents one-third of tropical forests in the world,” observes Mr. Zanetti, citing data from a survey by the Amazon 2030 Project, an initiative by researchers to develop an action plan for the Brazilian Amazon.

The iCS specialist highlights as an example of Brazil’s fragility in the current bioeconomy market the fact that Bolivia is the main exporter of Brazil nuts to the world, also known as Amazon nut.

“Despite Brazil being the largest producer of Brazil nuts, most of the processing and added value stays with neighboring countries, like Bolivia and Peru. This shows that Brazil still needs to invest in processing and industrialization to retain more value within the country,” says Mr. Zanetti.

When asked about the possibility that the advance of the Brazilian bioeconomy could be targeted by attacks from traditional producers or climate deniers who prefer another type of exploitation of the Amazon, Mr. Zanetti says this happens, but emphasizes the economic benefit as a powerful advantage.

“Climate denialism is driven by ideological or economic interests, especially those linked to illegal deforestation. But when the bioeconomy proves financially viable, even more conservative producers adopt it,” he says. “The bioeconomy is not an ideological issue, it’s a business that makes sense because it generates jobs, increases income, and improves the quality of life of entire communities. And it does all this on top of environmental protection. It’s an agenda that can unite different sectors of society,” he adds.

As explained by Rodrigo Spuri, conservation director of the NGO The Nature Conservancy (TNC), the bioeconomy in Brazil has different scales and it is necessary to understand that the idea is not to replace agribusiness, but rather to open a new path that brings micro and macroeconomic benefits.

“The growth potential of the bioeconomy cannot be compared to that of large-scale agribusiness, but it is significant and can be equivalent to sectors like cattle ranching in states like Pará,” says Mr. Spuri, emphasizing the advantages in terms of business generation and income increase for families living in forest areas.

The TNC director also argues that one of the main roles of the bioeconomy is to change the narrative that the forest is an obstacle to economic development, showing that it is, in fact, a value-generation mechanism.

“In addition to generating monetary value, the bioeconomy promotes income distribution and economic inclusion of diverse communities, generating significant value for those who live off the forest, even if it doesn’t make them big entrepreneurs,” says Mr. Spuri. “Brazil has the potential to be a leader in the sector due to its biodiversity, but needs to invest more in research and development to take advantage of forest knowledge and create new products and technologies,” he adds.

“The bioeconomy is not the silver bullet that will solve all environmental conservation problems alone. But it is a component and a strategy to add value to Brazil’s natural capital, such as forests and biomes, through market products,” concludes Mr. Spuri.

*By Rafael Vazquez — Altamira, Pará

Source: Valor International

https://valorinternational.globo.com/

23 de September de 2025/by Gelcy Bueno

Murray News

Multi-billion corruption scheme in mining targeted by Federal Police

Probe led to 15 arrests, including directors of National Mining Agency, over allegations of forged environmental permits

The Federal Police (PF) arrested Caio Mário Trivellato Seabra Filho and Guilherme Santana Lopes Gomes, directors of the National Mining Agency (ANM), and Leandro César Ferreira de Carvalho, a regional manager at the agency, on Wednesday (17). The arrests were part of Operation Rejeito, which investigates a corruption scheme involving forged environmental permits that enabled illegal mining in Minas Gerais. In total, 15 people were arrested, including public officials, business executives, a former congressman, and a sheriff. Two individuals remain at large.

In a statement, the ANM said it had learned of the Federal Police operation “through the press” and that “to date, the agency has not been formally notified of any measures involving staff or leadership.” The regulator reiterated its “commitment to legality, transparency, and collaboration with the authorities, whenever formally requested, while observing due process of law and ensuring the continuity of regulatory services.”

Also arrested was Rodrigo de Melo Teixeira, former director of administrative police at the Federal Police and currently director of administration and finance at the Geological Survey of Brazil (SGB), which is linked to the Ministry of Mines and Energy. The SGB said the allegations under investigation relate to a period before Mr. Teixeira’s appointment. The ministry declined to comment.

Mr. Teixeira has also served since last year on Petrobras’s Health, Safety, and Environment Committee, but he resigned from the position on Tuesday (17). Petrobras said it has no connection to the allegations under Operation Rejeito. “These matters are unrelated to the company’s operations and the committee’s work,” it said. Mr. Teixeira became known for initially leading the investigation into the stabbing of former President Jair Bolsonaro in Juiz de Fora (Minas Gerais) during the 2018 election campaign. He was dismissed from the Federal Police in February 2019.

At the state level, the scheme also involved officials at the Minas Gerais State Foundation for the Environment (FEAM). The state government dismissed the officials suspected of taking part in the scheme. Among them was Breno Esteves Lasmar, director-general of the State Forestry Institute (IEF) and chair of the Biodiversity and Protected Areas Council (CPB). Others dismissed included Arthur Ferreira Rezende Delfim (arrested by the Federal Police) and Fernando Baliani da Silva, directors of environmental licensing at FEAM; Rodrigo Gonçalves Franco, former FEAM president; Lirriet de Freitas Libório, former head of FEAM’s Eastern Minas Gerais licensing unit; and Vitor Reis Salum Tavares, regional management director at FEAM.

According to state communications secretary Bernardo Santos, some of the dismissed officials were already under internal investigation for suspected involvement in the scheme. Administrative proceedings remain underway. Former FEAM president Rodrigo Gonçalves Franco, who was also arrested, had already been dismissed on Saturday (13) due to what the government described as his conduct within the institution, which had been “generating rumors.” The government added that “illegal actions that may have improperly influenced decisions of the State Environmental and Water Resources System may be reviewed.”

At the center of the Federal Police investigation is businessman Alan Cavalcante do Nascimento, identified as the leader of the group, responsible for managing bribe payments and financial operations. He owns 38 companies, including Global Mineração, which operates in Serra do Curral and other areas of Minas Gerais, and Gute Sicht, whose operations in Serra do Curral were suspended by the courts in January for illegal mining.

Also under investigation are Mr. Nascimento’s partners at Gute Sicht: former state lawmaker João Alberto Paixão Lages and businessman Helder Adriano de Freitas.

According to the Federal Police, Fleurs Global Mineração served as the financial hub of the operation. The group allegedly created shell companies that applied for permits to carry out earthmoving services, but in practice extracted iron ore illegally in unlicensed areas. Documents were forged to secure fraudulent mining permits.

Investigators say the group paid bribes to officials at several federal and state environmental and mining agencies, including ANM, the National Institute of Historic and Artistic Heritage (IPHAN), FEAM, and the Minas Gerais State Secretariat for the Environment, among others. According to the Federal Police, more than R$3 million in bribes were paid.

The scheme allegedly began in 2020 and generated at least R$1.5 billion in illicit profits for the organization. Mining projects tied to the scheme that remain active are projected to yield more than R$10 billion in profits for those involved. The fraud could result in losses exceeding R$18 billion to the federal government.

The Federal Police report describes the case as “systemic corruption,” involving “a professional criminal structure” in the state that used “bribes and multiple forms of fraud” to enable illegal extraction, including in historically significant areas of Minas Gerais.

According to the investigation, the criminal organization was able to expand its operations by creating illicit mining projects, which were only possible “by co-opting authorities through the offer and payment of unlawful benefits.”

In total, authorities executed 79 search and seizure warrants and 22 pretrial detention warrants. The operation also ordered the freezing and seizure of R$1.5 billion in assets and suspended the activities of companies implicated in the scheme.

The Federal Police said pretrial arrests were necessary, in addition to other provisional remedies, because of the “degree of participation and importance” of the suspects in the criminal organization, making detention “the only way to dismantle the group and prevent ongoing offenses.” If left free, it warned, the suspects posed a “risk of destroying evidence.”

The operation was carried out jointly with the Federal Comptroller General’s Office (CGU) and supported by the Federal Prosecution Service (MPF) and the Federal Revenue.

The defense attorneys for the accused could not be reached for comment.

(With Folhapress)

*By Maira Escardovelli, Marlla Sabino and Cibelle Bouças — Brasília and Belo Horizonte

Source: Valor International

https://valorinternational.globo.com/

23 de September de 2025/by Gelcy Bueno

Murray News

Latam signs order for up to 74 Embraer E2 jets

Deliveries set to begin in the second half of 2026; with the deal, Brazilian manufacturer beats Airbus in key dispute

Latam Airlines surprised the market on Monday (22) by announcing an order for up to 74 E195-E2 aircraft from Brazilian manufacturer Embraer. The airline had long been weighing the purchase of a smaller jet for its fleet. Embraer secured the sale by beating its main rival, Airbus’s A220.

Latam Brasil CEO Jerome Cadier told Valor that the decision represents the group’s biggest strategic move since the merger of LAN and TAM.

The deal includes firm orders for 24 aircraft, with a list price of $2.1 billion, plus 50 purchase options. Deliveries are scheduled to begin in the second half of 2026, with the initial focus on Brazil.

The group is now rushing to define, within six months, the routes that will be operated with the new aircraft. Mr. Cadier said routes connecting the company’s hubs in São Paulo, Rio de Janeiro, Brasília, Fortaleza, and Porto Alegre are among the priorities.

The group estimates that adding the E2 to its fleet will open the door to 35 new destinations worldwide, most of them in Brazil.

“This is Latam’s biggest strategic move since the merger [between LAN and TAM],” Mr. Cadier said. The deal between the companies, announced in mid-2010, created Latam, now Brazil’s largest domestic airline and the main carrier linking the country internationally.

According to the executive, the choice of the E2 was commercial and technical. “We realized how well an Embraer jet fit into our network strategy. It is smaller than the A320 family, which allows us to keep growing our routes,” he said.

Passenger traffic on domestic flights in Brazil reached 8.7 million in August, up 8.5% year over year and a record for the month, according to data from the National Civil Aviation Agency of Brazil (ANAC).

Mr. Cadier noted that since the group’s emergence from Chapter 11 in 2022, the Brazilian market has gained increasing weight in Latam’s portfolio, with more aircraft being allocated to the country.

Before the pandemic, Latam operated 44 destinations in Brazil. That number is expected to reach 59 by year-end. “We could probably reach around 70 destinations [with the A320], but that would be hard,” he said, noting that some routes were already proving less suited to larger aircraft.

The airline is now finalizing its network for the E2. “We have simulated a network with some destinations, but we know these routes are sensitive to ICMS tax incentives. We will be talking to state governments,” he said. Details are expected in the coming months.

Operations are expected to begin in about a year, requiring the company to make route decisions within six months. The airline will also need to recruit additional staff, set up maintenance support, and obtain certifications at certain airports.

Mr. Cadier stressed that the scale of the partnership with Embraer will also depend on structural factors in Brazil, such as tax reform. “How many of these options [for 50 additional aircraft] we will exercise depends on how much aviation is penalized by the reform,” he said. According to him, the industry has not managed to make Congress understand how negative the reform could be for the sector.

“We are not asking for a tax cut. We are seeking to maintain the current tax burden,” he pointed out.

Currently, domestic tickets in Brazil are taxed at 9%, a rate that is expected to rise under the current reform model—possibly to around 27%. International tickets, currently exempt, would also be taxed.

According to calculations by the International Air Transport Association (IATA), if a 26.5% tax rate is applied, the average domestic fare in Brazil would increase from $130 to $160, while the average international ticket would rise from $740 to $935.

Latam’s E2 aircraft will seat 136 passengers, 38 fewer than the Airbus A320, and will also feature a premium economy cabin, but without a middle seat.

The addition of the E2 also supports the group after the crisis of regional carrier Voepass, which had partnered with Latam for regional operations using ATR turboprops with fewer than 100 seats. While Embraer’s jets are not regional aircraft in the same way as ATRs, Latam will now be able to serve areas that its A320s could not reach.

Sources said the agreement foresees the delivery of 11 to 16 aircraft as early as next year.

The acquisition is a win for Embraer, which has long sought to expand its fleet presence in Brazil. Recently, President Lula visited Latam executives in Chile. The group had been considering both the E2 and Airbus’s A220, the former Bombardier CSeries.

In June, Embraer lost a competition against the A220 for a contract of up to 40 jets with LOT Polish Airlines, citing geopolitical hurdles at the time.

Still, Embraer has secured a number of campaigns in recent months, showing that despite fierce competition, the Brazilian manufacturer remains a strong contender.

The E195-E2s will join Latam’s fleet of 362 aircraft, 283 of them Airbus single-aisle jets, a factor that had played in Airbus’s favor.

The deal was well received, with Embraer shares rising 4.63% to R$80.30, the biggest gainer on the benchmark stock index Ibovespa on Monday (22).

According to Santander analysts, the firm order should boost Embraer’s commercial backlog by 6.4%. XP said the deal helps reduce investment risks in the Brazilian manufacturer.

(Beatriz Kawai contributed reporting)

*By Cristian Favaro — São Paulo

Source: Valor International

https://valorinternational.globo.com/

23 de September de 2025/by Gelcy Bueno

Murray News

Supreme Court raises bar for health plan treatment coverage

By the decision, five cumulative criteria established by justices must be met to extend coverage beyond ANS list

The Federal Supreme Court (STF) has increased the number of criteria that must be met for health insurance plans to be required to cover treatments not included in the list of the National Regulatory Agency for Private Health Insurance and Plans (ANS).

The ruling, concluded on Thursday (18) by majority vote, represents a victory for health plans, even though the request to strike down Law No. 14,454 of 2022 was denied. The law requires coverage for treatments outside the ANS list, but it previously only set two conditions. In the prevailing opinion, Justice Luís Roberto Barroso added three more, bringing the total to five.

The provisions of the law had been challenged by the National Union of Self-Management Health Institutions (Unidas), which argued that the obligation was unconstitutional because it imposed broader duties on private companies than those binding on the State itself (ADI 7265).

The justices upheld the requirement for coverage of treatments outside the ANS list, provided all five conditions are cumulatively met: prescription by a qualified physician or dentist; no express denial by ANS or pending analysis of a list update; absence of an adequate therapeutic alternative for the patient’s condition within the ANS list; proof of efficacy and safety of the treatment based on high-level scientific evidence; and registration with the Brazilian Health Regulatory Agency (ANVISA).

The Court also ruled that, when reviewing lawsuits demanding coverage, judges must verify whether there is evidence of a prior request to the health plan with either a denial, unreasonable delay, or omission. In cases where courts order coverage, ANS must be notified to assess whether the treatment should be included in the mandatory list.

The decision establishes that the burden of proof lies with the plaintiff, though judges may shift this burden at their discretion under the Civil Procedure Code.

Most justices followed the opinion of Justice Barroso, who argued that the criteria are based on STF precedents in Themes 6 and 1234, which defined objective parameters for lawsuits demanding medicines from the public health system (SUS). He was joined by Justices Nunes Marques, Cristiano Zanin, André Mendonça, Luiz Fux, Dias Toffoli, and Gilmar Mendes.

Justice Mendes noted that the case involves about one-quarter of the Brazilian population, who rely on private health care. He argued that replicating the criteria already established for public health was necessary to avoid imbalance in the supplementary system, which could burden the SUS.

Justice Flávio Dino opened the dissent and was in the minority. Like Justice Barroso, he voted for the validity of the legal provision that the ANS list is the basic reference for plans. However, he argued there was no need for the Court to step into the role of Congress or the regulator. He maintained that the law already required observance of ANS’s technical rules and that further requirements were unnecessary. His view was supported by Justices Edson Fachin, Alexandre de Moraes, and Cármen Lúcia.

The ruling was praised by Gustavo Ribeiro, president of the Brazilian Association of Health Plans (ABRAMGE), who said it “restores Brazil to a global standard of legal certainty.” He argued that the prior framework created significant instability for the sector and noted that, over the past three years, the industry faced a negative impact of R$25 billion due to fraud and lawsuits demanding coverage outside the ANS list.

He expressed hope that the decision will eventually lower premiums.

Consumer advocates, however, see the ruling as a setback. Attorney Fernando Padilha, representing the Brazilian Association for the Protection of Health Plan Consumers (Saúde Brasil) in the case, said the decision “creates barriers to access and shifts major responsibility to patients, favoring only those who can afford strong legal representation.”

He warned that requiring patients and families to gather high-level scientific evidence would make the process costlier and more complex.

Attorney Marcos Patullo, partner at Vilhena Silva Advogados, also criticized the outcome, saying the new requirements will make coverage more bureaucratic and time-consuming. “Although coverage outside the list remains possible, the cumulative demands will delay access and increase red tape,” he said.

For José Luiz Toro, legal consultant of Unidas and president of the Brazilian Institute of Supplementary Health Law (IBDSS), the decision clarified the distinction between public and private health. “It is the State’s duty to provide broad and universal health care. Expanding private coverage without predictability only drives up costs, pushing beneficiaries out of the private system and overburdening SUS,” he said.

Attorney Marcio Charcon Dainesi of Dainesi Advogados argued that the ANS list should be exhaustive. “There is no way to ensure coverage without predictability, and ANS is the body responsible for regulating this matter,” he said. Still, he considered the ruling positive for both companies and consumers: “Without criteria, there is no certainty in treatments.”

* By Beatriz Olivon, Valor — Brasília

Source: Valor International

https://valorinternational.globo.com/

19 de September de 2025/by Gelcy Bueno

Murray News

Energy accounts for one-third of M&A deals in Brazil this year

Transactions in the sector reach R$50bn out of R$140bn total through September

Energy accounts for 35% of Brazil's M\&A transaction volume through mid-September — Foto: Divulgação/Divulgação — *Energy accounts for 35% of Brazil’s M\&A transaction volume through mid-September — Photo: Divulgação/Divulgação*

The energy sector has emerged as a major driver of mergers and acquisitions in Brazil this year, accounting for nearly R$50 billion in deals, or one-third of the market, despite high interest rates that have made companies more cautious. With upcoming concession renewals and a wave of asset rotation, industry giants are reshaping their portfolios through multibillion-real transactions.

From January to mid-September, energy represented around 35% of the total financial volume of M&A advisory transactions in Brazil, which reached roughly R$140 billion, according to data from consultancy Dealogic. That figure includes the R$12 billion acquisition announced last week by Spain’s Iberdrola of a stake in Neoenergia previously held by Previ, the pension fund for employees of Banco do Brasil, one of the largest deals in the sector this year.

Other major transactions include the proposed delisting of Serena by private equity firm Actis and Singapore’s sovereign wealth fund GIC, in a deal worth more than R$15 billion. Another significant deal was Equatorial’s sale of transmission assets to Canadian pension fund CDPQ.

More deals are underway and are expected to boost these figures in the coming months. Engie, for example, has reportedly put a minority stake in its transmission assets up for sale. People with knowledge of the deal also said Energisa is exploring a sale of its transmission lines. Meanwhile, French utility EDF is selling a thermal power plant and looking for a partner in its renewable energy business. Brookfield is close to announcing a deal involving Quantum.

“There’s a lot happening in the energy space,” said Felipe Mattar, managing director at Morgan Stanley in Brazil. “The backdrop is a combination of factors, including the renewal of distribution concessions and future renewals of large hydroelectric contracts. These companies need to recycle assets to make room in their portfolios.” He noted that the upcoming expiration of distribution concessions typically reduces EBITDA, which in turn drives asset turnover.

Energy continues to reshape Brazil’s M&A landscape. Roderick Greenlees, global head of investment banking at Itaú BBA, said the sector has always played a key role in M&A activity and remains central to the country’s largest deals this year. “In transmission, there are groups that win auctions and build the power lines, and then, because these are stable revenue assets, they naturally attract pension funds as buyers,” he said.

However, the trend is not uniform across the sector. The renewable energy segment is facing a supply glut, and many companies are being hit by “curtailment”—a forced reduction or halt in electricity generation imposed by Brazil’s National Electric System Operator (ONS).

Mr. Greenlees said that the only reason energy hasn’t had an even stronger year is that deals involving renewable energy assets are on hold. The main obstacle, he said, is the difficulty in pricing assets impacted by curtailment, which is causing losses.

Engie said in a statement that it is currently conducting “a thorough and strategic analysis to define the most interesting lots for participation in the October auction.” The company added that it “does not comment on market rumors.”

Energisa said it is “constantly analyzing opportunities, considering prudent capital allocation, a commitment to quality, and appropriate returns to shareholders.” EDF confirmed it is exploring the possibility of taking its Brazilian subsidiary public in order to bring in new partners, with the goal of recycling capital. Brookfield declined to comment.

*By Fernanda Guimarães and Robson Rodrigues — São Paulo