A scandal that turns against the system itself

Allies at the center of the Banco Master probe align their legal strategies, signaling a joint offensive against political, judicial, and regulatory institutions

 

 

 

José Luis de Oliveira Lima had already been representing Daniel Vorcaro in other criminal cases. On Friday, he took on another—the Master case. It was Vorcaro who recommended the lawyer to João Carlos Mansur in 2025, when the owner of Reag became a target of Operation Hidden Carbon, an investigation into money laundering in the fuel market.

In Compliance Zero—the operation where the Banco Master’s owner made his debut behind bars—Mansur was also subjected to search and seizure. Investigators suspect that Master attributes its assets to shares in Reag-managed funds that, under what critics describe as weak oversight by Brazil’s securities regulator (CVM), conceal assets and values.

This Master-Reag, Vorcaro-Mansur connection—now unified under a single legal strategy—is far from a minor development in the ongoing investigation. Pierpaolo Bottini, Vorcaro’s former lawyer, has entered plea agreements but is best known for representing individuals targeted by major anti-corruption probes since the Car Wash investigation era.

The arrival of José Luis de Oliveira Lima—known as Juca—indicates that Vorcaro and Mansur will act together. If there are plea deals, they probably won’t target each other specifically, but rather the broader system—politicians, judges, regulators, and financial players.

It remains unclear where businessman Nelson Tanure will position himself. He is represented by another lawyer, Pablo Testoni, and was also the target of a search and seizure in Compliance Zero. Federal police suspect he is the hidden controlling shareholder of Master, and federal prosecutors have charged him with financing R$700 million in capital injections into the bank.

Even if Tanure’s role remains unclear, it is becoming more likely that the operators at the center of the scheme will collaborate against a fragmented institutional landscape. At the Supreme Court, where there are signs that at least two justices acted defensively in Vorcaro’s favor, the latest step has been to bring in the team captain.

Justice Gilmar Mendes’s delay in ruling on Vorcaro’s arrest, at a moment when the outcome already seems decided, is widely seen as a deliberate signal. A clearer message, however, came when he moved to suspend a virtual session and bring to the full bench a case involving a preliminary injunction by Justice Flávio Dino. The injunction had stopped a congressional inquiry’s attempt to access the tax and banking records of Fábio Luís Lula da Silva, the president’s son.

By bringing the case to the physical plenary, Mendes seems to be testing whether his colleagues are willing to involve President Lula in a broader institutional confrontation. A view gaining support within the court suggests that if Lula did not obstruct the Master investigation because he has no connection to its alleged wrongdoing, then the principle of “each to his own” should apply universally—including to his son.

Known as “Lulinha,” or little Lula, he came under scrutiny in the investigation due to his connections with Brasília lobbyist Roberta Luchsinger. Deals she pursued with Antonio Camilo Antunes—the so-called “bald man of the INSS”—did not come to fruition. Still, questions remain about how the president’s son earns a living in Spain and whether his ties to Luchsinger go beyond unsuccessful business ventures. Lula has said he “would not vouch” for his son, though he is closely monitoring the case.

The president has voiced frustration over his approval ratings declining due to a scandal involving the financial system, Congress, and the courts. Last week, he tried to change the story by revoking the visa of a lower-level official from the Donald Trump administration, who had made up an agenda to justify a visit to former President Jair Bolsonaro. The move targeted about one-third of “independent” voters who, according to Genial/Quaest, mostly oppose Trump.

Beyond the rhetoric of sovereignty, Lula is also trying to revive a narrative focused on defending democracy. Attacks against Senator Flávio Bolsonaro are likely to follow this theme. An interview in which the former president’s son suggested that a solution to tensions with the Supreme Court might have to come from outside constitutional limits has already been shared by influencers close to both the presidential palace and the court.

If Mendes is turning the court’s plenary into a stage for signaling to the executive branch, the unity of the justices themselves remains uncertain. They cannot present a united front toward the executive if they remain deeply divided internally.

Casual political gatherings over the weekend in Brasília indicated that speculation about the possible retirements of justices Dias Toffoli and Alexandre de Moraes remains just that—speculation. For now, they seem confident that a Senate led by Davi Alcolumbre would not push forward with impeachment proceedings.

On Monday, Dino sent a separate message to the National Council of Justice (CNJ), chaired by Justice Edson Fachin. As the rapporteur in the appeal of a judge removed from office by the Rio de Janeiro court and the CNJ, Dino ruled that compulsory retirement can no longer be regarded as a disciplinary penalty.

However, the decision sends the case back to the CNJ, effectively prompting Fachin to give substance to the rhetoric of stricter judicial accountability. When Dino made his ruling public, Fachin was giving a lecture at a Brasília law school, reciting the seven principles meant to guide the judiciary—dignity, independence, impartiality, prudence, restraint, civility, and integrity. The Master scandal has called all of them into question. For now, the ability to establish a truce seems to be a trait limited to those under investigation.

*By Maria Cristina Fernandes

Source: Valor International

https://valorinternational.globo.com/

/by

U.S. seeks political signal from Brazil on critical minerals deal

Washington proposes tailored framework with price floor and financing as Brasília remains divided over openness

The Trump administration is awaiting a “clear political signal” from Brazil to move forward with a bilateral agreement on critical minerals, according to a spokesperson for the U.S. Embassy. The proposal is to establish a tailored cooperation framework between the two countries, including priorities such as setting a minimum price for these materials.

Critical minerals—used in advanced technologies in sectors such as defense and communications—have become a focal point of geopolitical competition.

The U.S. aims to build a partnership with Brazil capable of strengthening both countries’ industrial and technological bases. According to the spokesperson, Washington is interested in cooperating to expand processing capacity for these minerals.

More than 50 mining projects in Brazil have already been identified “that could contribute to international efforts to diversify and strengthen global supply chains for critical minerals,” the spokesperson said.

To enhance its position in the sector, the United States has outlined priorities, including discussions on a price floor, incentives for responsible investment in mining and processing that benefit both countries’ industrial bases, and streamlined licensing procedures. U.S. officials emphasize that the dialogue is intended to deliver mutual benefits.

Brazil holds the world’s second-largest reserves

Brazil’s rare earth reserves—estimated at 21 million tonnes—are emerging as a key element in global geopolitics. The country holds the world’s second-largest reserves but still lags in extracting these elements.

Given Brazil’s potential, the United States says the country could play a central role in developing global supply chains for critical minerals. “The U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the United States are offering more than $600 million in financing for ongoing critical minerals projects in Brazil, and we see potential for billions of dollars in additional investment,” the embassy spokesperson said, referring to U.S. government-backed institutions.

Seeking to deepen cooperation, the U.S. government will host an event this week to discuss opportunities for collaboration with Brazil in the sector. The Critical Minerals Forum will take place on March 18 in São Paulo and is expected to bring together more than 100 companies and representatives from state governments.

Brazil currently occupies a paradoxical position in the geopolitics of energy-transition minerals: it holds vast reserves but remains a minor producer, resulting in the underutilization of significant economic potential for income, industrialization, and technological development. This gap—typical of countries that fail to convert comparative advantage into competitive advantage—represents the main measurable economic opportunity for the coming decades.

As Valor reported, members of the Brazilian government say the critical minerals agenda remains stalled due to a lack of internal consensus on how open the country should be to foreign participation.

One faction within the Lula administration argues that imposing constraints on the sector at this stage would be counterproductive, given Brazil’s vast potential. These officials oppose agreements that could introduce restrictions on domestic production. This was also one of the main reasons Brazil declined to join a U.S.-led alliance on critical minerals and rare earths announced in early February.

Given the strategic importance of the issue, critical minerals are expected to feature on the agenda of a bilateral meeting between Lula and Trump, tentatively scheduled for March or April, though no date has been set.

Brazilian government sources argue that the country should engage with multiple partners rather than align exclusively with any single country or bloc. At the same time, they resist the idea that Brazil should remain merely a supplier of raw materials.

*By Sofia Aguiar  — Brasília

Source: Valor International

https://valorinternational.globo.com/

/by

Foreign investors raise share of Brazil M&A to 41%

Trend reflects global portfolio reallocation and shifting geopolitical dynamics

 

 

The share of foreign investors in competitive bids for Brazilian companies has risen again as a direct result of the global portfolio reallocation trend and a new geopolitical dynamic, partly driven by uncertainty under Donald Trump’s administration, which has favored emerging markets.

As a result, overseas investors accounted for a larger share of total deals completed in Brazil. Their participation in mergers and acquisitions rose from 31% of the total in 2024 to 41% last year.

That means that, of the R$267.7 billion in M&A deals recorded in 2025, R$110 billion came from foreign acquisitions. Based on the number of deals, the share rose from 26% to 34% in 2025. Of 342 transactions in total, 116 involved foreign buyers.

The trend has been even more evident at the start of this year, which has already seen major cross-border deals. In the first two months of the year, the foreign share reached 76%, still based on the number of transactions, according to data from Dealogic, a consultancy that compiles market data worldwide.

This year, one of the main foreign-related transactions is the sale of aluminum producer CBA, previously owned by Votorantim, to China’s Chinalco and Anglo-Australian miner Rio Tinto, in a R$4.7 billion deal. Another relevant transaction was the sale of IHS Towers’ tower assets in Brazil to Macquarie Asset Management.

In March, the entry of U.S. fund Warburg Pincus into egg producer Global Eggs, with a $1 billion investment, reinforced the trend. In 2025, highlights included Iberdrola’s increased stake in Neoenergia and the sale of Motiva’s airports to Mexican group Asur.

Shift toward emerging markets

With global volatility, much of it tied to measures taken by U.S. President Donald Trump, and amid a weakening dollar, global capital has been moving toward emerging markets, benefiting Brazil.

That has been more evident in the stock market, where foreign inflows reached about R$40 billion just at the start of this year, already surpassing the total for 2025, when inflows amounted to R$25 billion. The same trend, however, is now beginning to show up in the M&A industry.

“The global portfolio diversification trend, which we have seen more clearly in the capital markets, is now also becoming visible in M&A,” said Flavio Egon de Picciotto, co-head of M&A at Itaú BBA. He noted that investor interest is most visible in sectors such as infrastructure, energy, and natural resources. “Energy remains a driver, always the most representative,” he said.

Foreign participation in M&A talks has not been driven only by U.S. investors, highlighting the search for diversification across geographies. “At the turn of 2025 to 2026, discussions about capital reallocation increased, with flows into emerging markets. The environment of persistent uncertainty increased the weight of diversification. We are also seeing growing interest from European and Asian investors in assets in Brazil,” said Anderson Brito, head of investment banking at UBS BB.

In the breakdown of 2025 cross-border deals, North America accounted for 14.3%, while Europe represented 36.7% and Asia 34%.

Broader interest

Fabio Medeiros, head of Morgan Stanley’s investment banking business in Brazil, said he expects a busier year for M&A activity in the country. “There is a flow heading toward emerging markets, and that is starting to show up in M&A, with companies that might have considered investing in the United States now looking at Brazil,” he said. One of the highlights, Medeiros added, is the appearance of new foreign buyers.

“Brazil is well positioned to attract foreign investment,” he said. In addition to the traditional infrastructure and natural resources sectors, which have historically attracted this type of capital, he highlighted interest in the financial and technology sectors.

Diogo Aragão, head of M&A at Bank of America in Brazil, said the new global dynamic has increased foreign interest in certain segments, such as infrastructure and, more recently, natural resources, with greater concentration in mining, including rare earths. “We are seeing a diversification trend in funding sources, and I think it is here to stay,” said the BofA executive.

Beyond those sectors, he said Brazil’s technology segment also has the potential to attract foreign investors, given that major global players remain underpenetrated in the country. Last year, the main transaction in that segment was the entry of European giant Visma into Brazil through the acquisition of Conta Azul.

Pedro Muzzi of Goldman Sachs stressed that foreign interest in Brazilian assets has been rising, with new names joining the processes. “There is a lot of appetite and interest in Brazil. It is hotter than ever,” he said.

*By Fernanda Guimarães — São Paulo

Source: Valor International

https://valorinternational.globo.com/

/by

Bolivia backs U.S. push to label Brazilian gangs as terrorists

Support from regional leaders contrasts with Lula’s stance as Washington seeks broader coalition against organized crime

 

 

Bolivian President Rodrigo Paz expressed support for a U.S. proposal to designate Brazil’s Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as terrorist groups, arguing that criminal organizations are part of a wider “cycle” of terrorism.

“The classification of terrorism is complex and varied. For us, what we have done—arresting drug traffickers—is central to our fight against organized crime, mafias, and also terrorism, because they are part of a cycle of terrorism,” Paz said at a press conference on Monday at Brazil’s Itamaraty Palace.

His remarks align with Paraguayan President Santiago Peña’s position and increase pressure on President Lula’s stance in Latin America. In an interview with Valor this week, Peña said he supports the possibility of the United States designating Brazilian criminal groups as terrorist organizations. Paraguay adopted that classification in 2025, and according to Peña, it has enabled the country to deploy its security forces more effectively.

Paz also highlighted the arrest of Sebastián Marset last Friday, a suspected drug trafficking leader with alleged ties to the PCC. According to the Bolivian president, Marset was one of the country’s top four traffickers and contributed to a climate of instability and what he described as terrorism. “Today, our society is freer,” he said.

Earlier today, Paz and Lula signed an agreement to enhance cooperation in fighting organized crime along their shared border. Speaking to the press, Lula said both countries are united in their concern for public security.

“The agreement provides for greater coordination to prevent and punish drug and human trafficking, smuggling, vehicle theft, money laundering, illegal mining, and environmental crimes. At the same time, it is essential to facilitate the movement of people,” Lula said.

He emphasized that the future of the region depends on cooperation among countries. “Without ideological constraints, without hatred and without violence, we will build a peaceful, integrated, and prosperous Latin America,” he said.

During his meeting with Paz, Lula noted that bilateral trade between Brazil and Bolivia “remains well below its potential,” reaching just $2.6 billion in 2025.

“We need to do much more to reverse this situation,” he said alongside the Bolivian president. Elected last October, Paz is a member of the Christian Democratic Party and is seen as a center-right politician. The visit occurred at Lula’s invitation.

According to Lula, there are opportunities to expand trade in sectors such as food, dairy products, genetic materials, seeds, fruit, cotton, sugarcane, and soybeans. He also pointed to the potential for deeper cooperation in biotechnology, with support from Brazil’s agricultural research agency, Embrapa, as well as in the production of biofuels and other renewable products.

As Valor has reported, Paz’s state visit is part of Brazil’s efforts to engage with right-leaning leaders in Latin America, as Lula seeks to avoid potential isolation under a second Trump administration.

Earlier this month, the U.S. president formalized a military coalition dubbed the “Shield of the Americas” with leaders from 12 Latin American countries. Lula was not invited, as most participants were aligned with right- or center-right positions. According to the U.S. government, one of the group’s objectives is to combat drug cartels.

Paz’s visit comes days after Lula canceled a trip to Chile for the inauguration of President José Antonio Kast, a right-wing leader. Foreign Minister Mauro Vieira represented Brazil at the ceremony.

During the visit, Brazil and Bolivia also signed an agreement on electrical interconnection and a memorandum of understanding on tourism cooperation.

Lula said construction of a bridge over the Mamoré River is expected to begin next year. The binational project will link Guajará-Mirim, in Brazil’s Rondônia state, to Guayaramerín, in Bolivia. The bridge will span 1.22 kilometers and is estimated to cost R$421 million.

Also on Monday, Lula confirmed that he will attend the 10th summit of the Community of Latin American and Caribbean States (CELAC), scheduled for March 21 in Bogotá, Colombia.

*By Sofia Aguiar, Mariana Andrade and Giordanna Neves — Brasília

Source: Valor International

https://valorinternational.globo.com/

/by

Master used cartel-linked supplier to move depositor money

Provider of school kits, Army goods and water cisterns took an unusual loan and transferred R$385 million to a fund managed by asset manager Reag

Banco Master used a company linked to a public procurement cartel to divert R$385 million raised from depositors to funds managed by asset manager Reag, Valor has found based on public documents and on a Central Bank report sent to prosecutors about allegedly fraudulent credit operations.

EBN Comércio, Importação e Exportação Ltda. and its controlling shareholder, Julio Manfredini, have been active in public tenders to supply a wide range of products, including school uniform kits, books, Army footwear and even water cisterns for drought relief in Brazil’s semiarid Northeast, either directly or through consortia with other companies.

In at least one case, the tender stemmed from mandatory congressional caucus earmarks and included a direct request from then-Senator Roberto Rocha of Maranhão state, from the Republicans Party, that a specific price-registration record be used to purchase 500 cisterns for the state.

A report of suspected crimes sent by the Central Bank to prosecutors in November says EBN obtained a loan from Banco Master with no apparent economic justification. The company then transferred R$385 million to D Mais fund, managed by Reag.

From there, the funds were reallocated through a chain of funds in a transaction that allegedly served to divert the money to other purposes. The transaction is part of a set of operations involving 36 companies, whose names were disclosed by Valor, that allegedly led to a total diversion of R$11.5 billion from Banco Master.

Manfredini is EBN’s managing partner, according to records at the São Paulo State Board of Trade.

That company, Manfredini himself, have ties to Capricórnio S/A, which in 2021 was convicted by Brazil’s antitrust watchdog, Cade, for operating a cartel in public tenders for school uniforms and school supply kits for public school students in São Paulo, Rio de Janeiro, Santa Catarina and Goiás between 2007 and 2012.

That case also gave rise to a criminal proceeding in São Paulo over alleged violations of Brazil’s bidding law, which was dismissed in 2025 after the court found that prosecutors had failed to individualize the conduct of each defendant. There is also a civil case for administrative misconduct still pending in São Paulo.

Another proceeding, at Brazil’s Federal Court of Accounts, or TCU, involving Army procurement, shows that Capricórnio was EBN’s sole shareholder at incorporation and that EBN is its successor, keeping the same address and 70% of its workforce. Manfredini was Capricórnio’s chief executive.

According to Valor’s review, EBN took part in tenders and signed contracts with the Army between 2016 and 2024 to supply equipment such as tents, uniforms and footwear. There are no suspicions regarding those contracts, but the TCU’s technical staff did investigate flaws in oversight of footwear delivered by EBN, without imposing any sanctions.

Cistern contracts

In addition to direct tenders, EBN also joined five consortia, and some partners in those ventures are under investigation, including for alleged irregularities in the supply of textbooks in Rio de Janeiro.

EBN formed the Consortium EC, for which there are no documented suspicions of wrongdoing, alongside CSL Educacional, a company cited in the Calvário operation. One of its partners, Márcio Nogueira Vignoli, was arrested during the investigation and is awaiting trial out of custody.

One of EBN’s contracts involved the supply of cisterns in Maranhão and stands out because it originated in mandatory congressional caucus earmarks and because of the direction given to the type of bidding process that led to the R$2.4 million purchase in 2017.

Senator Rocha, then a member of the Brazilian Social Democracy Party, sent a letter to the head of Codevasf, the São Francisco Valley Development Company, stating that R$5 million in congressional earmarks had been allocated to buy cisterns and requesting that the company express interest in price-registration record No. 24/2017 from the Federal Institute of Education of Ceará, or IFCE, Maracanaú campus.

In practice, that meant the purchase, initially estimated at 2,400 cisterns but with only 500 ultimately acquired, piggybacked on a much smaller IFCE tender aimed at buying 50 storage tanks for the institute. At first glance, there is no irregularity in that mechanism, which saves procedural costs. What stands out is that the request came from a politician, rather than from Codevasf’s technical staff.

The procedure also required discussions among Codevasf technicians because it fell outside the usual standards of the Água para Todos (Water for All) program, under which the policy for distributing cisterns follows defined priorities. In the end, the cisterns were donated to nonprofit associations, such as rural unions, which then distributed the units to beneficiary families.

EBN said the loan from Banco Master was entirely lawful and was intended to provide capital for the acquisition of a large textile company. The resources were partly invested in D Mais fund, managed by Reag, then regarded as a reputable institution in the market, so the money would not sit idle.

“The negotiations did not go ahead because of unresolved differences and the complexity of the ownership structure,” the company said in a statement. EBN repaid the loan to Banco Master.

The company said Capricórnio has an independent structure from EBN and that a lawsuit was filed seeking to nullify Cade’s decision. “The criminal and misconduct cases have all, so far, been decided in Capricórnio’s favor.”

On the consortia, it said EBN conducted due diligence through compliance mechanisms. “At the time the consortium was formed, EBN had no relationship with legal entities whose executives were under investigation or facing criminal proceedings.” In the case of the cisterns, the company said the deal was approved by all oversight bodies and denied any relationship that was not in strict compliance with the rules.

Senator Roberto Rocha said joining IFCE’s price-registration record was an administrative decision to make it possible to execute the earmarks within the budget timetable, since the funds are generally released at the end of the year. He said the project followed Codevasf’s technical rules and the legal requirements for mandatory earmarks, that his office maintained institutional contact only with IFCE, and that there was no relationship with the company that won the tender.

Codevasf said it did not join a price-registration record for a tender that had already been completed, but rather one that had yet to be held, with open competition and acquisition of goods at the lowest price. “Communications between agencies to express purchase intentions are routine,” it said.

“For funding provided through a congressional earmark, identifying the beneficiaries is the responsibility of the lawmaker who submitted the earmark,” the company said in a statement. Even so, it said, parameters similar to those of the Water for All program were adopted, which helped ensure that the funds were directed to vulnerable families.

IFCE said the Maracanaú campus acted only as the manager of the price-registration record, regularly conducting the auction and managing the record. According to the institute, adhesion by other public bodies is allowed by both the tender notice and legislation, and it is up to the joining body, in this case Codevasf, to assess technical suitability, quantities and budget availability.

IFCE also said there were no spending commitments by Codevasf while the record was in effect and that the process followed normal procedures, with a favorable legal opinion.

The Army said its contracts with EBN are available on Brazil’s Transparency Portal and that, so far, no signs of irregularities or failures in oversight have been identified. It also said there are no ongoing proceedings or audits at the Federal Court of Accounts involving contracts with the company.

Lawyers for Banco Master controlling shareholder, Daniel Vorcaro, said they would not comment on the matter. Reag had not responded to requests for comment by the time this edition went to press, nor had the companies that are part of the consortia with EBN.

*By Alex Ribeiro — São Paulo

Source: Valor International

https://valorinternational.globo.com/

/by

LNG prices surge amid Middle East war; impact in Brazil is limited

Gulf supply disruptions tighten market, while Brazil’s reliance on alternative suppliers may soften local effects

 

 

 

The war in the Middle East has pushed liquefied natural gas (LNG) prices up by more than 70%, driven by two main factors: the halt in supply from Qatar, one of the world’s largest exporters, and the closure of the Strait of Hormuz in the Persian Gulf, through which about 20% of global oil flows. In Brazil, however, the impact of the LNG price surge on domestic prices is expected to be limited, according to experts interviewed by Valor.

Before the conflict began, on February 27, LNG was priced at €32.38 per megawatt-hour (MWh). By Monday (9), it had risen to €55.86 per MWh, a 73% increase in the European Title Transfer Facility (TTF) market, one of the main global benchmarks for the commodity.

After a bombing at the Ras Laffan facility in Qatar on March 2, QatarEnergy suspended LNG production. One of the main challenges resulting from the shutdown is the lack of viable alternative routes for transporting large volumes, which has pushed prices higher. The International Energy Agency (IEA) warns that a prolonged supply interruption could worsen shortages in the market.

Vitor Santos, a professor of economics at the Lisbon School of Economics & Management (ISEG), said the closure of the Strait of Hormuz limits export capacity for several producing countries. Importers, meanwhile, face supply difficulties. “The closure of the Strait of Hormuz harms producers in the Persian Gulf and the main Asian consumers of oil and natural gas, which have a high dependence on fossil fuel imports,” Santos said.

An analysis by the Oxford Institute for Energy Studies (OIES) in June 2025 had already assessed that a global LNG price shock triggered by the closure of Hormuz could resemble the surge seen in 2022 after Russia invaded Ukraine, when spot prices approached $30 per million BTU. “Another price shock similar to that of 2022 could bring direct consequences to government budgets in Europe and Asia,” the study said.

In Brazil, LNG began to be used in the 2000s as the country struggled to expand its natural gas supply for thermal power generation. Petrobras installed three regasification terminals at the time—one in Rio de Janeiro, one in Ceará, and another in Bahia. Today, Brazil has six LNG terminals in operation. According to experts, price and supply effects in the local market should remain limited.

Rodrigo Borges, managing director of Aurora Energy Research in Brazil, said that when LNG prices surge globally, the marginal cost of thermal plants increases, potentially pushing up electricity prices in Brazil, particularly when the power system needs to activate these plants.

Diogo Lisbona, a researcher at FGV Ceri, explained that energy and natural gas prices could reflect the effects of the war in the short term. This is because large consumers and some thermal plants operate under contracts with quarterly adjustments linked to the weighted average of Brent crude prices.

Rivaldo Moreira Neto, managing partner at A&M Infra, said oil markets are broader and allow some mitigation of Hormuz-related disruptions through increased production elsewhere in the world. LNG, however, does not have the same flexibility. Moreira noted that Europe and Asia are major consumers of Qatari LNG and emphasized that the Hormuz blockade is more significant for LNG than for oil.

“Brazil, as an importer, is not necessarily expected to face supply interruptions, since we import from the United States and the United Kingdom. The issue is price, which should rise significantly,” Moreira said.

Adriano Pires, a partner at the Brazilian Infrastructure Center (CBIE), believes any effects will likely be limited and related to potential rerouting of ships to meet specific demand. Pires noted that in Brazil, natural gas is generally traded through long-term contracts. Concern may focus on the capacity reserve auction scheduled for March 18.

According to PSR Consultoria, the impact of the crisis on Brazil’s market will depend on how many thermal plants have fuel costs tied to international prices and how these indicators evolve. “If the crisis persists, pressure on these indices will be strong, leading to higher variable costs for thermal plants and impacts on electricity prices,” PSR said.

One point of attention is the availability of gas for thermal plants during the conflict and how much Middle Eastern supply could be replaced by U.S. exports. PSR notes that the United States is expected to add around 60 million tonnes per year of new LNG export capacity between 2026 and 2027. “Although this volume would not replace Qatar, it is a robust amount that could help cushion demand in a prolonged crisis.”

By Fábio Couto  — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/

/by

Brazil has 10 years to get rich before it gets old

McKinsey says Brazil, like Latin America, needs productivity gains to deliver sustainable growth and avoid losing investment to other countries in the region

 

 

 

Brazil, like Latin America more broadly, is running short on time to lift income levels before an aging population becomes a bigger drag on growth, and risks losing ground in the race for investment if it fails to raise productivity and invest in strategic sectors. Those are the warnings from Nelson Ferreira, a senior partner at McKinsey, commenting on the consultancy’s report on productivity in Latin America, shared in advance with Valor.

“Latin America as a region may have one of its last chances over the next 10 to 15 years to get rich before it gets old. And Brazil even more so. In Brazil, it may not be 15 years, it may be 10 years,” Ferreira said, noting that Brazil’s population is already older and growing more slowly than in peers such as Peru and Bolivia.

With Brazil nearing the end of its demographic dividend, productivity growth will have to come through investment in physical and human capital. Labor productivity in Brazil, however, has grown by less than 1% a year for more than a decade, McKinsey says, while other comparable economies have been advancing at close to 2%.

The loss of Latin America’s relevance in the global economy, especially over the past 15 years, is widespread, Ferreira said. “Latin America has about 7.5% of the world’s population and once accounted for 7% of global GDP. Today, it is 6%. And if it keeps growing at the same pace, by 2050 it will be 3.5%,” he said.

Low productivity is a sign of that “difficult” situation, as Ferreira describes it. He points out that while other emerging economies grow by an average of 3.4% a year, Latin America grows by 2.3%.

Of that, 1.5 percentage points come from population growth, and only 0.8 percentage point from productivity. Capital productivity adds 0.9 percentage point, while labor productivity subtracts 0.1 percentage point. “A worker in Latin America today produces almost the same thing, or even a little less, than at the start of the century,” Ferreira said.

Natural strengths

Despite the challenging backdrop, McKinsey sees opportunities. A number of global trends tied to rising protein consumption, the energy transition, the need for digitalization and the emergence of new industrial hubs could make Latin America, and Brazil if it prepares for it, an almost “natural champion” in some of those areas, Ferreira said.

The current production costs for electronics and the automotive industry in Mexico and Central America, for example, are comparable to, or even lower than, China’s, he said. “One-third of the leading medical equipment companies exporting to the United States are in Costa Rica. It is already an export hub,” he said. “The region holds 58% of lithium reserves and 35% of copper reserves, minerals that are essential for the energy transition.”

McKinsey identified seven sectors where Latin America should concentrate investment: next-generation manufacturing for artificial intelligence and automation; renewable energy, not only for power generation itself but also for chemicals and other derivatives; digital services and the digitalization of the economy; data centers; agriculture and food; fossil fuels, which will remain important for some time; and critical minerals.

“These are the seven sectors where we see the region playing a highly prominent role globally. And in several of them, Brazil stands out, such as renewable energy, digitalization, agriculture, data centers, partly because of its renewable and hydroelectric base, and critical minerals,” Ferreira said.

Together, those industries could generate about $400 billion in revenue for Brazil by 2040, McKinsey estimates. For the region as a whole, if it succeeds in growing in those segments and bringing in all the services needed for those industries to operate, the consultancy estimates GDP could rise from $6.5 trillion to $10.5 trillion by 2040.

“That matters because at $10.5 trillion, the region would have per capita income in the range of $15,000, which is roughly the lower threshold for entering the OECD tier,” Ferreira said, referring to the Organization for Economic Cooperation and Development, often seen as a club of wealthy nations.

He noted that Brazil, for example, has per capita income of $10,000, but it is highly uneven across states. “Brazil, like Latin America, could reach income above $15,000 and then, despite all its problems, could have a minimum average income level compatible with more developed countries.”

How to get there

To reach those figures and attract investment into the sectors it identified, McKinsey suggests four steps for Latin American countries.

The first is to diversify trade and investment partners. “The region needs to go to India, Canada, Japan and Southeast Asia, and not remain stuck in this China-U.S. bipolarity,” Ferreira said.

The second is greater integration within the region itself. Central America, for example, has growth rates comparable to Southeast Asia’s, and countries are experiencing a boom similar to what Brazil saw after the Real Plan, yet they are not on the agenda of Brazilian companies, Ferreira said. “But they should be,” he said, citing Guatemala, Honduras, Panama and the Dominican Republic.

The third point is the need for regulatory progress. “The region, and Brazil in particular, still has regulatory and tax complexities that drive away both local and foreign investors,” Ferreira said.

Finally, McKinsey says the region needs to attract international talent, and on that front Brazil is actually in an improving moment, in Ferreira’s view.

One advantage in attracting investment is that Latin America is perhaps “the most geopolitically neutral region in the world,” Ferreira said, something especially important at a time of multiplying conflicts like today’s.

But Brazil could lose investment to Mexico and Central America, for example, if it remains expensive and lagging behind, McKinsey warns. Brazil’s average investment rate between 1997 and 2022 was 18% of GDP, below the regional average of 19.7%, the report says.

“Latin America has the conditions to compete with China. But today that competition is happening in countries such as Mexico, not Brazil, which is more expensive because of its tax burden, logistics and the fact that many of our factories are outdated in terms of production processes,” Ferreira said.

“Brazil risks missing this wave of investment that is coming to the region, to Mexico and Costa Rica, for example,” he warned.

According to Ferreira, reforms are needed, such as reducing public spending, which would help lower interest rates and make investment more attractive. He also said Brazil needs to move forward on cutting red tape and consolidating its tax reform.

“When it comes to the sectors mentioned, Brazil needs a long-term vision of what it wants to be. In the sectors where we could be natural global leaders, there is not necessarily a clear vision of what Brazil wants to be by 2035,” he said. “The private sector and the government could help articulate that.”

AI and productivity

Artificial intelligence will also be key to raising productivity, Ferreira said.

“AI allows us to make jumps in labor productivity in agribusiness, industry and services, so that the productivity that has fallen over the past 25 years in the region can start rising again. There are segments of construction, infrastructure, factory manufacturing and even agribusiness that are still in the early stages of using AI,” he said.

Brazil has potential in this area because it is one of the most digitalized societies in the world, he noted. “This is one of the country’s main priorities across all sectors if it is really going to pursue major productivity gains,” Ferreira said.

“This may be our last chance to invest in these sectors and use them to turn the productivity key, to stop growing only through population growth and instead grow through labor and equipment productivity,” he concluded.

*By Anaïs Fernandes — São Paulo

Source: Valor International

https://valorinternational.globo.com/

/by

Closed-door vote at Brazil regulator sparks scrutiny in Ambipar case

Public spending watchdog questions CVM decision that spared company from tender offer benefiting Banco Master

 

 

The decisive meeting that upheld the controversial ruling by the Securities and Exchange Commission of Brazil (CVM) exempting Ambipar from launching a mandatory takeover bid—a decision that ultimately benefited Banco Master—was held behind closed doors and included the participation of an external federal prosecutor with no formal link to the case. Both elements, considered unusual by insiders, had remained internal matters within the regulator. They have now come to light after the technical staff of the public spending watchdog, TCU, questioned the vote.

In recent weeks, Valor spoke with several CVM officials who participated in or had knowledge of details from the session, held just days before Christmas. The minutes of the meeting have yet to be published—another peculiarity in the case. Typically, the agency releases minutes roughly 30 days after its meetings.

In addition to confirming on the merits the decision to waive Ambipar’s obligation to conduct a takeover bid, the board unanimously upheld the casting vote of then-interim chairman Otto Lobo, which is now under scrutiny by the TCU, as previously reported by Valor. Lobo has been nominated by President Lula to chair the CVM and is awaiting Senate confirmation.

Contacted by Valor, Lobo confirmed details of the meeting but said the deliberations followed standard institutional procedures applied in similar cases.

The Ambipar matter was the final item on an agenda that included five other proceedings, in a meeting that began at 10 a.m. on December 23, a Tuesday. The board was set to analyze appeals involving a pharmaceutical company, irregularities in the capital markets, and administrative matters under the CVM’s authority.

When Lobo called for a vote on the Ambipar appeal, participants were surprised by an unusual request: he asked all staff members not directly linked to the case to leave the room.

Although the CVM’s Tuesday morning board deliberations are not open to the public, it is uncommon to ask agency staff to exit, as attendance by employees not directly involved in a specific case is generally permitted. Exceptions typically apply only when a matter is classified as confidential, which was not the case for the Ambipar discussion. After asking staff to leave, Lobo informed those present that he had called in an external participant.

The individual was federal prosecutor Ilene Patrícia de Noronha Najjarian, who has worked at the CVM for many years and currently serves as a sitting member of the National Financial System Appeals Council (CRSFN), which reviews sanctions imposed by the CVM, the Central Bank, and the Financial Activities Control Council (COAF). She is in her second term representing the CVM at the appeals body.

According to accounts from those present, Najjarian’s participation caused discomfort. The CVM’s Specialized Federal Attorney’s Office (PFE) had previously taken an institutional position against Lobo’s interpretation, arguing that he should not have exercised the casting vote that exempted Ambipar from the tender offer requirement. In the PFE’s view, Lobo could not break the tie because when the case first came before the board, he was not the CVM’s chairman. At the time, João Pedro Nascimento chaired the agency and had voted in favor of requiring the takeover bid.

When the case returned to the agenda after Lobo requested additional review, the vote was tied two-to-two. Director Marina Copola sided with Nascimento in favor of the tender offer, while Director João Accioly voted with Lobo. Lobo then cast the tie-breaking vote in favor of Ambipar and its shareholders, including Banco Master, Nelson Tanure, and controlling shareholder Tércio Borlenghi Junior.

During the December meeting, the PFE reiterated its position, this time through acting chief federal prosecutor Marcelo Mello Alves Pereira, who had taken over from Luciana Alves. She had stepped down from the role in September, months after formally opposing Lobo’s interpretation.

According to people familiar with the matter, Alves had already indicated she intended to head the CVM’s attorney’s office for only two years. She had been in charge of the Specialized Federal Attorney’s Office (PFE) since 2023. However, Valor has learned that Lobo’s appointment as interim chairman of the CVM also weighed on her decision, given that the PFE provides direct legal counsel to the chairman, who is responsible for appointing the head of the office.

In this context, Marcelo Mello Alves Pereira was serving as head of the CVM’s legal department. Although he maintained the PFE’s formal position against Lobo’s procedural interpretation, the interim chairman gave the floor to Najjarian, who spoke in support of Lobo’s view and against the stance of the PFE itself.

Participants described the moment as awkward, noting that Najjarian’s remarks contradicted the position of her direct superior. Among federal prosecutors, the episode was viewed as a form of insubordination. Sources also noted that in recent years, there have been no reports of Najjarian participating in board-level decision meetings, as she does not hold a leadership role within the PFE.

“If everyone not linked to the case had to leave the room, why was a prosecutor who did not head the legal department allowed in to contradict her superiors?” a CVM source told Valor.

During Lobo’s interim leadership, sources said Najjarian had been consulted on other occasions regarding legal doubts in certain decisions. Should the Senate confirm Lobo as chairman, she is considered the leading candidate to head the PFE-CVM.

Another element that drew attention during the December judgment was the stance of CVM Superintendent-General Alexandre Pinheiro, who heads the agency’s technical staff. Although the technical department had challenged Lobo’s interpretation, exempting Ambipar from the tender offer, Pinheiro submitted a written statement supporting Lobo’s view, which was read during the meeting. He was not present at the session.

Pinheiro’s position was poorly received by other superintendents, who felt unsupported in a high-profile and controversial case. In the initial vote, when Lobo cast the deciding vote, Pinheiro had not made any statement, despite being present at that session.

At the conclusion of the December meeting, the board unanimously rejected the appeal filed by the technical staff. While Copola maintained that the tender offer was required, she supported Lobo’s interpretation regarding the casting vote.

The connection between Banco Master and Ambipar emerged after the capital markets regulator investigated an alleged coordinated operation involving the bank and businessmen Nelson Tanure and Tércio Borlenghi Jr., Ambipar’s main shareholder, to boost the company’s share price by roughly 800% between June and August 2024. Had Ambipar been required to conduct a tender offer, those shareholders would have faced multi-billion-real payments.

The TCU’s technical staff identified “indications of wrongdoing” in Lobo’s casting vote. In a formal opinion, they concluded that because the original judgment began under João Pedro Nascimento’s presidency, the tie-breaking vote should have been attributed to him, even though he was not present at the December session.

Lobo was nominated to chair the CVM by President Lula in January, in a move that reportedly went against the preference of the Finance Ministry, to which the CVM is linked. His nomination has been attributed to members of the judiciary, business figures close to Lula, and leaders from the Centrão, a cluster of center-to-right parties in Congress.

In a statement to Valor, Lobo said the “conduct of the proceedings observed the applicable institutional procedures.” The removal of individuals from the room, he said, aimed to “minimize the risk of information leakage before official publication.”

Regarding Najjarian’s participation, Lobo said she “had a formal understanding of the case, as did the superintendent-general.” He described the move as consistent with session dynamics “whenever legal advisory support or the hearing of professionals with broad technical insight is deemed appropriate.”

Former PFE chief Luciana Alves said, through the Federal Attorney General’s Office (AGU), that her departure was for personal reasons unrelated to the Ambipar case.

Najjarian said inquiries should be directed to the CVM and the AGU. Both institutions were contacted.

In a statement, the CVM said the minutes had not yet been published “due to workflow” and would be made available “in due course.” Regarding Najjarian’s presence, the regulator did not provide a copy of her statement or explain the reason for her participation, saying the relevant institutional information would be reflected in the minutes.

On the superintendent-general’s absence, the CVM said he was “on recess” and represented by his deputy, Maria Lúcia Macieira de Mello. The agency did not provide the written statement read during the session and recommended “consultation of the meeting minutes at the appropriate time.”

Valor also asked how many board meetings Najjarian attended over the past five years, but received no response. The CVM likewise did not answer whether she would declare herself recused from judging Ambipar-related cases at the CRSFN should appeals arise in the future.

All other parties mentioned were contacted. Banco Master and Ambipar declined to comment by press time. Nelson Tanure said his acquisition of Ambipar shares occurred after the events described by the CVM and that there were no irregularities.

*By Guilherme Pimenta — Brasília

Source: Valor International

https://valorinternational.globo.com/

/by

Cabo Verde Mineração finds new rare earths area in Minas Gerais

Company seeks international partners to fund processing complex

 

 

Cabo Verde Mineração, a Brazilian company based in Belo Horizonte, has identified a new target area for rare earth extraction. The site, known as Alvo Botelhos, lies on the edge of the Poços de Caldas Alkaline Complex in southern Minas Gerais and has potential resources exceeding 500 million tonnes of ionic clays.

The company is in talks with international groups to finance the construction of an industrial complex to process the rare earth elements.

“The scale of the project, with more than 91,000 hectares across 57 mining rights, along with the results we have so far, point to the potential for a world-class project,” said Túlio Rivadávia Amaral, CEO of Cabo Verde Mineração.

Ionic clay is a type of clay that contains rare earth ions and is used in energy transition technologies, wind power generation, high-efficiency motors, electric vehicle batteries, advanced electronics, and other applications. In the Alvo Botelhos area, tests indicated the presence of high-value magnetic elements such as neodymium, praseodymium, dysprosium, and terbium, according to Rivadávia.

Exploration at Alvo Botelhos is being conducted alongside drilling at Alvo Caconde 1, located in the same Poços de Caldas complex, where the company initially pursued an iron ore project.

The targets lie within a block of approximately 91,000 hectares covering four municipalities in Minas Gerais—Muzambinho, Cabo Verde, Campestre, and Botelhos—as well as Caconde in São Paulo state. Rivadávia said the mining company holds 57 mineral rights for exploration in the region.

Among the technical results from priority targets are intervals of 16 meters with average grades of 2,245 parts per million of total rare earth oxides (TREO), including readings of 4,302 ppm TREO and 854 ppm magnetic rare earth oxides (MREO).

“Anomalies are distributed across all four quadrants of the surveyed areas, with results reaching as high as 14,000 ppm and significant recurrence in the 3,000-ppm range,” said Oscar Yokoi, a geologist and technical consultant and a member of the Australian Institute of Geoscientists.

SGS Geosol conducted metallurgical leaching tests, which showed TREO recoveries of up to 81.7% and MREO recoveries above 60%, indicating technical and economic feasibility for mining. Samples were analyzed and certified by ALS Brasil and SGS Geosol laboratories.

Rivadávia told Valor that the project began as an iron mining venture in 2020, but during studies a hydrothermal alteration—a volcanic fissure—was identified, suggesting the presence of rare earths. The company then decided to focus on further exploration.

Research began in 2022. The first discovery was at the Caconde target, in the municipality of the same name, and the second was made now. “At Alvo Caconde, we identified a potential of 100 million tonnes of rare earths at 3,200 ppm. That alone could supply a plant for 20 years with output of 5 million tonnes per year. With Botelhos, the expectation is at least 500 million tonnes,” Rivadávia said.

An initial economic assessment at Alvo Botelhos indicated extraction potential of at least 500 million tonnes of rare earths. Drilling began last week.

Rivadávia said he is in talks with groups from the European Union, Canada, the United States and China to raise funding for the project, though the names of the groups remain confidential at this stage.

For the first phase, covering exploration and certification of the areas, Cabo Verde Mineração is investing about $10 million of its own funds.

The company is seeking financing to build the industrial complex, which is expected to require $370 million for a plant with capacity to process 5 million tonnes per year.

The initial plan is to install the plant in Cabo Verde, Minas Gerais, where the company already holds licenses to extract and process iron ore.

In parallel with the rare earth project, Cabo Verde Mineração resumed in December 2025 its iron ore mining project at the Catumbi Mine, located in Cabo Verde and Muzambinho, southern Minas Gerais. The project had been halted for two years while the company focused on rare earth exploration.

“The iron ore reserve is small, close to one million tonnes. We have a license to extract 600,000 tonnes per year. I estimate it will be a project lasting about two and a half years,” Rivadávia said. The company plans to produce lump ore and sinter feed with an average iron content of 66%, aimed at the domestic market.

The rare earth project, however, is expected to take six to seven years to complete the industrial complex and obtain all licenses and certifications needed for production, according to the executive.

Rare earth mining differs from other types of extraction. The company uses ammonium sulfate, which exchanges ions with the clay to separate the rare earth elements. The clay is then returned to the environment enriched with ammonia, a type of fertilizer.

Much of the land involved is currently used for large-scale coffee plantations. “Our intention is to partner with producers. We pay compensation for coffee trees removed during mining. Farmers also receive an exploration royalty equal to 0.5% of CFEM [Brazil’s financial compensation for mineral resource exploitation],” Rivadávia said.

*By Cibelle Bouças — Belo Horizonte

Source: Valor International

https://valorinternational.globo.com/

/by

Hormuz closure threatens shipping, oil and Brazil trade flows

Analysts warn of higher freight costs and risks to exports to the Gulf as carriers halt transits

 

 

 

The war by the United States and Israel against Iran, launched on Saturday (28), is rippling across multiple parts of the economy, with implications for Brazil as well. Beyond higher oil prices, pressure on ocean freight rates and risks to Brazilian exports to Persian Gulf countries, the closure of the Strait of Hormuz could disrupt global trade in inputs and goods, specialists told Valor.

Luis Augusto Medeiros Rutledge, a researcher at the Federal University of Rio de Janeiro (UFRJ) and an energy geopolitics analyst, said the conflict in Iran could “forcibly reshape global supply chains.”

“I believe the impact today will be much greater on the global energy outlook and on supply chains for multiple energy sources,” he said. More than 20 million barrels of oil per day pass through the Strait of Hormuz, the waterway between Oman and Iran, he added.

Roberto Uebel, an economist and international relations professor at ESPM, a Brazilian business school, also said a halt in ship traffic through the strait could have a “very significant impact” on global supply chains, affecting Brazil. For him, maritime logistics disruption is the main issue triggered by the conflict.

Shipping lines

Maersk said on Sunday (March 1) that it had suspended transits through the Strait of Hormuz — Foto: Angel Garcia/Bloomberg
Maersk said on Sunday (March 1) that it had suspended transits through the Strait of Hormuz — Photo: Angel Garcia/Bloomberg

At least 150 oil tankers have already dropped anchor in open waters, avoiding entry into the strait. Maersk, the world’s largest container shipping company, said on Sunday (March 1) it had suspended the transit of its vessels through the area.

“The safety of our crews, vessels and customers’ cargo is our number one priority. We have suspended all vessel transit through the Strait of Hormuz until further notice,” the company noted in a statement. Hapag-Lloyd, CMA CGM, Mitsui OSK Lines and NYK Lines have also halted passage.

The disruption could also hit Brazil through another jump in global ocean freight prices, depending on how long the conflict lasts, said Leandro Barreto, a consultant at Solve Shipping.

He pointed to attacks by Yemen’s Houthi movement on cargo ships sailing near Oman in 2024. The campaign led companies to choose a longer route around South Africa.

At the same time, many shipments already en route to the Persian Gulf were forced to unload in Singapore, clogging one of the world’s main maritime hubs. At the height of the crisis, delays in Singapore reached seven days.

As a result, average global freight rates tripled in the first half of 2024. The same happened on the Asia-to-Brazil route, where prices tripled in the early second half of the year.

Alternative routes

On oil, Rutledge said alternative routes could help mitigate some of the effects of a disruption in Hormuz. He pointed to two pipelines that could serve as options.

One runs from the Abqaiq oil-processing facility, near the Persian Gulf, to the port of Yanbu on the Red Sea, operated by Saudi Aramco, Saudi Arabia’s state-controlled oil company. The other is run by the United Arab Emirates and bypasses the Strait of Hormuz, linking onshore oil fields to the export terminal of Fujairah, on the Gulf of Oman.

Even so, the trend for oil prices is upward. Rutledge said a disruption in flows through Hormuz could push crude to $120 in a longer and more intense war, “which would create significant pressure on the global economy and raise energy costs across all sectors.”

Roberto Ardenghy, president of the Brazilian Petroleum, Gas and Biofuels Institute (IBP), said the situation remains open-ended and he does not envision oil at $100 a barrel. IBP represents the main oil and gas companies operating in Brazil. On Friday, Brent crude closed up 2.45% at $72.48.

In Ardenghy’s view, if the conflict drags on, it could be an opportunity for Brazil to emerge as an alternative supplier to producers in the region. Brazil is the world’s ninth-largest oil exporter, he said, with “very reliable production” given the absence of geopolitical conflict, and high-quality pre-salt crude with low carbon emissions.

In trying to win new markets, however, Brazil would face competition from countries such as Nigeria, Guyana and Equatorial Guinea.

Risks to exports

The conflict’s impact on Brazilian exports to the Middle East is also a concern. “We mainly export sugar, chicken and soybeans. It’s an interesting market for Brazil,” Uebel said, while noting that Iran is not the main buyer of those products. “There is concern about the long-term situation, and whether these trade relationships will be maintained.”

Brazil imports mainly fertilizers from Iran, but Uebel said there are other sources of supply in Central Asia and Eastern Europe. “When the war in Ukraine began, the Brazilian government was concerned about diversifying its suppliers,” he said.

(With reporting from international news agencies).

*By Lucianne Carneiro, Marcelo Osakabe and Ana Luiza Tieghi — Rio de Janeiro and São Paulo

Source: Valor International

/by