Brazil lost ‘last bastion’ with Judiciary crisis, Schalka says

Executive warns Brazilians are losing hope amid revelations of Master case, criticizes justices and backs code of conduct

 

01/26/2026

In recent weeks, reports about relationships between justices of Brazil’s Federal Supreme Court and private interests, as well as episodes involving ethics and institutional conduct, have begun to draw public attention. In December, a manifesto titled “For a code of conduct at the Supreme Court now” emerged, with a petition hosted on the Change.org platform. The document, still open for signatures, supports a proposal by Chief Justice Edson Fachin to create a code of conduct to ensure the impartiality of Supreme Court justices.

The manifesto has already gathered more than 15,000 signatures from business leaders, academics and public figures. Among them is Walter Schalka, a board member at Suzano and an active voice in civil society mobilizations, such as the letter in defense of democratic institutions released in 2022 amid pre-election tensions. According to him, the new initiative arises because after “repeated scandals” across different governments, the country has also lost its “bastion,” the Judiciary.

Schalka criticizes the fact that justices do not recuse themselves from cases involving relatives or situations in which they themselves received funding. “The combination of concentrated power with single-judge decisions creates an imperialism of decision-making that is not part of a democratic nation,” he says. “What was supposed to be a constitutional court has turned into a criminal court,” he adds.

In Schalka’s view, today “the Judiciary wants to legislate, the Legislature wants to execute, and the Executive is financially exhausted.” Beyond “putting each branch of government back in its proper box,” he argues that Brazil must work to attract investment and ensure an education system capable of retaining young people who, without hope, are leaving the country.

He says he will work for a presidential candidate who offers an alternative to the polarization between President Lula and the “Bolsonaro clan.” Below are key excerpts from his interview with Valor:

Valor: What motivated the manifesto and the petition for a code of conduct at the Supreme Court?

Walter Schalka: Over recent decades, we have seen repeated scandals in the Executive and the Legislature. In both there are serious people, but we see many deviations in behavior. The bastion we had was the Judiciary, a sense of security that institutions would be safeguarded by a branch that was absolutely unquestioned. That is why we strongly support the initiative by Justice Fachin and others. It is also necessary to extend this to other levels of the courts to restore confidence that decisions are based on technical criteria, not lobbying or economic interests.

Valor: Some causes raised in the past led to larger mobilizations. Is this the case with this manifesto?

Schalka: We started with the manifesto, but we want to turn this into a broader movement of society. Unfortunately, Brazilians are losing something fundamental: hope. We constantly hear bad news, which erodes confidence in the long-term viability of society. It also creates a very serious problem, which is brain drain. Young people want to leave Brazil—those who can. It is urgent to begin reversing this trend. We need to prepare the country for future generations, leveraging Brazil’s advantages for global integration.

Valor: Are there international references in discussions about the code?

Schalka: Several countries have codes of conduct for the Judiciary—Germany and England, for example. They serve as a basis to make it very clear to society and to judges what is acceptable and what is not.

Valor: What most stands out among things a Supreme Court justice should not do?

Schalka: It is hard to accept that, as we are seeing, justices do not recuse themselves from cases involving relatives or situations in which they received funding for trips or events abroad.

Valor: But within the Supreme Court itself, a group resists creating a code of conduct…

Schalka: The next question is: why not have a code of conduct? Watching a debate with Luciano Sica, president of the São Paulo Bar Association, he made it very clear: one thing is to discuss what will be in the code. Blocking its creation presumes a freedom of action that cannot be the basis for the moral and ethical standards of the highest body of the Judiciary.

Valor: What impact can the loss of credibility of the Judiciary have on society?

Schalka: If the three fundamental institutions—legislative, executive and judicial—have low credibility with the population, we lack the foundation to believe in a society capable of transforming itself and carrying out necessary reforms. In the case of the Judiciary, there are single-judge decisions. This combination of concentrated power with such decisions creates an imperialism of decision-making that is not part of a democratic nation.

Valor: With a code, who would oversee this “bastion”?

Schalka: The only way to change the Supreme Court is through impeachment, which the Senate decides. But what criteria should be used? With a code of conduct, we can say that the code is not being respected by Justice A or B and thereby generate grounds for disqualification.

Valor: In your assessment, has the Supreme Court acted beyond the limits of its constitutional mandate?

Schalka: The Supreme Court was created to be a constitutional court, but today a relevant part of it has become a criminal court. People want to bring everything to the Supreme Court. One example is the Master case. Shouldn’t it be in the first instance? But it went straight to the Supreme Court on the claim that a federal lawmaker was linked to the case. There is not even proof. This raises a troubling issue: lobbying. Brazil is a country that unfortunately has, at its core, a very bad combination of patrimonialism and corporatism, which means interests are constantly serving some group or category.

Valor: Some experts say the National Organic Law of the Judiciary, already applied to other levels, would be sufficient to regulate the Supreme Court as well. Was this discussed?

Schalka: No, we did not discuss this because the problem exists at other levels too. We are seeing cases of appellate judges linked to corruption. So the issue is not only the Supreme Court. In the past, people would say: this law applies or it doesn’t. Now, we don’t know what will happen.

Valor: What is your view on the frequent presence of Supreme Court justices at events and in the media?

Schalka: Twenty years ago, I didn’t know who the Supreme Court justices were, maybe one or two. Today I know all of them by heart and their ideological positions. The court has become an entity tied to political and ideological issues, not to defending the Constitution. The court needs to adopt a more reserved stance.

Valor: Does the fact that the president appoints justices compromise the court’s independence?

Schalka: That is true, with exceptions. In the past, nominees were people of great legal knowledge and high reputation. We had fantastic Supreme Court justices. After appointment, they should be absolutely neutral, focused only on constitutional matters. I want to add a caveat: Justice Edson Fachin was appointed by [former] president Dilma Rousseff and is absolutely committed to constitutional issues. That is a positive example. We all have natural biases, it’s human. But today the Judiciary wants to legislate.

Valor: Can you give an example?

Schalka: Marijuana possession. They assigned a specific number of grams. Why not three times more or less? That is for the Legislature to decide.

Valor: So there are role reversals among institutions?

Schalka: Today the Legislature wants to execute through budget amendments, taking a significant share of public funds. It amounts to R$60 billion a year, a massive sum. The Judiciary wants to legislate, and the Executive is tied up because it lacks budgetary space and has entered financial exhaustion. It does not carry out the necessary reforms, and the country stalls. With reforms, Brazil would have a chance to gain presence and offer opportunities to new generations.

Valor: And which reforms are most urgent?

Schalka: One is administrative reform. The Brazilian state is inefficient—it collects a lot and spends poorly. All privatizations have shown this. We also need a new pension reform. Brazil cannot spend R$1 trillion a year on a pension deficit.

Valor: You mentioned young people wanting to leave the country. How do you assess education in Brazil?

Schalka: Brazilian education is almost universal, but of very low quality. We are rapidly losing ground in rankings and training our young people based on an economic reality from 20 years ago, even though they will enter the workforce in 15 or 20 years. That means a gap of 35 to 40 years compared with the rest of the world, and Brazil is not waking up to this.

Valor: For the productive sector, what is the impact of this scenario?

Schalka: Brazil needs a significant reduction in interest rates and in country risk, and it needs to attract investment to generate what is essential for the population: jobs. I strongly support social programs, but we cannot measure them by the number of participants. The goal should be to gradually reduce that number by placing people in the labor market. Saying unemployment is low is misleading. The figure is correct, but 40 million people are not looking for jobs because they are doing informal work. They work, but do not want formal contracts to avoid losing social benefits. A country cannot be driven by people selling brigadeiros [sweets] on street corners. I am not against it, but that is not what moves a country forward.

Valor: Does being an election year make decisions harder?

Schalka: The government will use all the fuel left in the tank this year to reach the election. Whoever is elected will inherit an extremely difficult fiscal situation and will have to make decisions, which always leads to the issue of raising taxes.

Valor: What are your expectations for the presidential election?

Schalka: If the runoff is Lula versus someone from the Bolsonaro clan, Brazil will be in a very bad position. Neither side will help attract investment. I will work to ensure that the runoff includes someone who can restore fundamental values such as ethics and morality. When you join a company, a CEO creates a plan and evaluates competitive advantages to transform it. Brazil needs the same approach.

Valor: Is there already a candidate you intend to support? A “third way”?

Schalka: I don’t like the term “third way” because we used it in the last election and it didn’t succeed. There are excellent potential candidates who could step forward. We have a strong group of governors. I will work hard for whoever makes it into the race.

*By Marli Olmos — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Reimbursement of Banco Master CDBs injects extra liquidity in market

Advisory firms see excess of funds released all at once and lack of assets to absorb them

 

 

01/20/2026

More than R$40 billion (about $8 billion) that the Credit Guarantee Fund (FGC) has begun to disburse to reimburse investors holding Banco Master certificates of deposit (CDBs), following the bank’s extrajudicial liquidation, has injected an unusual, out-of-season surge of liquidity into the investment market. Advisory firms that work directly with clients are campaigning to retain those funds, but the volume released all at once is too large to be absorbed immediately.

“It’s a lot of liquidity in a very short period of time and without sufficient assets to back it,” said Samy Botsman, a managing partner at Fami Capital. “Some of it will go into Treasury Direct bonds, some into funds, but the market doesn’t have R$40 billion in assets to reallocate all at once.”

Botsman added that a bank failure significantly undermines investor confidence and that small and mid-sized institutions tend to face greater difficulty in raising funds. Yields offered by stronger issuers, in turn, are likely to decline, squeezing returns for investors.

Even before the funds were released, advisory firms and major investment platforms had already begun efforts to ensure that eligible investors listed accounts at their own institutions when registering to receive FGC payments.

Fernando Katsonis, a partner and chief executive of Lifetime, which is connected to BTG Pactual’s network, described the situation as a “significant liquidity surplus,” noting that some institutions may fail to retain part of the funds as the money flows back into the system. “XP had a much larger volume [of Banco Master CDBs] than others and, obviously, is the one that stands to lose the most when the funds return. Everyone is running product campaigns to attract more money. Our mission is to bring in twice what we had before.”

XP is the largest distributor of securities issued by small and mid-sized banks and held about 70% of the assets issued by Banco Master and Will Financeira—which was not liquidated—totaling more than R$30 billion. BTG Pactual held R$6.7 billion, while Nubank also carried Banco Master paper on its platform, with nearly R$3 billion outstanding.

Katsonis said both BTG and XP have been offering short-term alternatives, including CDBs, as the market has fewer offerings available at the start of the year. “There’s the Claro transaction [R$3 billion in debentures], secondary-market fixed income or government bonds,” he said. “After a bad experience with CDBs, investors shouldn’t be moving into anything that isn’t top tier. They want blue-chip bank CDBs or government securities.”

André Albo, a founding partner at Alta Vista Investimentos, also sees an excess of liquidity hitting the market over a short period. “There won’t be enough products for that amount of money,” he said. “So our recommendation is to keep it in liquid fixed income and allocate it gradually over the coming weeks.” He added that tax-exempt fixed income, international investments and public offerings of debt securities or private credit funds are likely destinations for the funds.

Some investors may still be willing to roll into new CDBs, but with yields at rock-bottom levels, that is unlikely to be the most obvious path, Albo said. “Mid-sized banks have raised a lot of funding in recent months. Since they’re no longer as hungry for funding, they’re lowering rates.”

Guilherme Mendes, head of fixed income at Blue3 Investimentos, part of XP’s network, said Banco Master’s CDBs had won over investors because they combined very attractive yields with the backing of the FGC guarantee — “which at the time seemed like an appropriate risk-return trade-off.” Now, with the guarantee being paid out, the market is facing an “extremely significant and concentrated financial movement that is likely to intensify over the coming weeks.”

The Banco Master episode, Mendes added, “shines a light on the fact that poor allocations — even when backed by potential guarantees — can and will generate discomfort, noise and reactive decisions that are not, or should not be, appropriate when building a portfolio.” “Our role is to prevent this kind of situation from happening again,” he said.

This is now a moment to rethink portfolios based on each client’s profile and objectives. Liquidity needs, risk tolerance and time horizon should factor into the assessment, guiding the allocation of resources with discipline and responsibility, the Blue3 executive said. That means there is no single reallocation recommendation or “miracle” asset to which the funds should be directed. “Each portfolio has its own complexity, and the investment rationale is handled at the micro level, in the relationship between advisor and client, respecting the individuality of each portfolio and its objectives.”

Looking at the macroeconomic backdrop and market guidelines for 2026, Mendes said the funds are likely to remain in fixed income. “There is an anchor in place, with strong expectations of interest rate cuts over the cycle,” he said. “It tends to be a year in which returns in Brazil will come much more from asset repricing — from the cost of money — than from any other internal or external variable.” In his view, inflation-linked and fixed-rate assets are set to gain prominence, with real interest rates at historically high levels.

At Miura Investimentos, an advisory firm in BTG’s network, appetite is also focused on fixed income, according to co-founder Diego Ramiro, “taking advantage of the fact that the Selic rate is high and the yield curve is set to flatten.” Government bonds, bank products and AAA-rated private credit are the preferred choices, he said. “We’re advising clients to invest as soon as possible because once the money is released, demand will be very high and rates will compress. There’s R$40 billion entering the market, and there aren’t enough products to absorb it all.”

*By Adriana Cotias, Valor — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Geopolitics hurt executive confidence in Brazil, worldwide

PwC survey released in Davos shows Brazil ranking 13th in investment interest; last time confidence peaked here was in 2022

 

 

 

01/20/2026

Leaders of large companies continue to bet on reinventing their businesses, seeking growth opportunities outside their traditional sectors, a trend already seen last year, according to the 29th Global CEO Survey organized by consulting and audit firm PwC and presented on Monday (19) during the World Economic Forum in Davos, Switzerland. This year’s survey, however, shows increased pessimism among executives in Brazil and abroad, reflecting geopolitical uncertainties.

According to the survey, 38% of senior executives in Brazil and 30% globally are confident about their companies’ revenue growth prospects over the next 12 months. The figures represent a sharp decline compared with the survey released in early 2025, when confidence stood at 50% in Brazil and 38% worldwide. PwC surveyed more than 4,400 people in 95 countries between September 30 and November 10, 2025.

In Brazil, confidence peaked in 2022, when 63% were more optimistic about their businesses. Abroad, confidence reached 56% in the same period.

The main concern today is whether business transformation is happening at the pace required to keep up with advances in artificial intelligence.

CEOs continue to look for growth opportunities outside their traditional sectors. The data show that 51% of Brazilian CEOs (42% globally) have begun competing in new areas over the past five years. Among those planning major acquisitions over the next three years, nearly 50% in Brazil and worldwide expect to make moves outside their current segments.

In Brazil, 23% of leaders believe trade tariffs will reduce their companies’ net profit margins over the next 12 months, while 67% expect little or no change. Globally, nearly one-third (31%) of CEOs foresee margin declines, and 60% do not expect significant changes. Among those anticipating margin compression, most believe the decline will be only slight.

Two-thirds (66%) of global CEOs say concerns related to stakeholder trust have emerged in at least one area of their companies’ operations over the past 12 months. During this period, there is a significant difference in total shareholder returns between publicly traded companies that faced more of these concerns and those that faced fewer.

“There is the issue of geopolitical conflicts that are taking place, and also wars. There are also questions related to barriers that are being put in place. To give an idea, tariffs, for example, are a barrier that has not yet been overcome and continues to generate new challenges,” Marco Castro, president of PwC in Brazil, told Valor.

Castro sees greater movement among companies seeking to enter areas with more attractive profitability through business reinvention.

“If you don’t move, you will see a competitor entering your market. Today it is much harder to put up barriers to entry in your business, because with the use of technology you gain a very large possibility of starting to have multiple operations and multiple opportunities,” the executive said.

According to him, artificial intelligence has also become extremely relevant, gaining traction in business and playing a fundamental role in defining future winners. “This really began to take shape in 2025, and looking to 2026 we see two major movements: gaining mastery of AI and using the tool to change business processes. It is not an isolated term.”

The PwC survey was clear on this point when it asked respondents whether they are transforming their businesses at the pace needed to keep up with technological advances, including AI.

Data for Brazil show that more than a quarter of leaders make extensive use of technology in functions such as demand generation (28%), support services (28%), products and services (29%), strategic direction-setting (28%) and demand fulfillment (20%). Globally, adoption is somewhat less consistent: 22% in demand generation, 20% in support, 19% in products and services, 15% in strategic definition and 13% in demand fulfillment.

According to the survey, just over half of global CEOs (51%) plan to make international investments in 2026. Among them, the U.S. remains the top destination, with more than one-third (35%) placing the country among the three that are expected to receive the largest share of company investments. The United Kingdom and Germany (both at 13%) and China (10%) also remain among the preferred options.

Among the most notable changes, 13% of CEOs planning to invest abroad included India among their top three destinations, a significant jump from 7% the previous year. The United Arab Emirates and Saudi Arabia entered the top ten, ranking sixth and seventh, a sign of growing interest in the Middle East. Brazil, while attracting more interest (from 4% to 6%) from 2025 to 2026, remained in 13th place in the ranking.

Brazil, according to Castro, has previously been among the top ten investment destinations and even among the three most attractive in the recent past. “Three years ago, it dropped out of the top 10. We consider Brazil’s position as 13th as an investment destination. What is interesting is how this is being repositioned and diluted: despite being in 13th place, the number of those interested in investing in Brazil has nearly doubled,” he said.

For the PwC executive, the expectation is that the next survey, to be conducted at the end of this year, could show greater optimism in Brazil, even in an election year. As the survey will be carried out after the runoff election results, Castro believes business sentiment could indicate greater confidence regardless of the outcome at the polls.

*By Mônica Scaramuzzo, Valor — Davos

Source: Valor International

https://valorinternational.globo.com/

 

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CSN plans asset sales to cut debt by up to R$18bn

Steelmaker’s plan includes selling stake in infrastructure unit and control of cement in 202

 

 

01/20/2026

Companhia Siderúrgica Nacional (CSN) said on Wednesday (14) it plans to sell assets, including control of its cement business and a stake in the group’s infrastructure arm, to reduce leverage by between R$15 billion and R$18 billion. The plan was approved by the board of directors with the aim of definitively lowering the group’s debt level. The strategy calls for asset disposals starting in 2026, with the estimated proceeds equivalent to about half of current debt.

The initiative is part of a broader plan to reorganize the company’s capital structure and allow greater focus on businesses considered more profitable. Management expects that, with the execution of the strategy, CSN will be able to double EBITDA (earnings before interest, taxes, depreciation and amortization) within eight years and reach leverage considered sustainable, at around 1 time the net debt/EBITDA ratio. The news moved the company’s shares, which closed the session down 3.12% at R$9.95.

Based on the maximum estimated value of the sales, the group’s leverage would fall from about 3.14 times to 1.83 time, according to pro forma projections.

According to chairman Benjamin Steinbruch, the decision marks the most relevant moment for the company to structurally address its leverage problem. “We don’t have bad companies, but we are living in an economic environment with stratospheric interest rates and competition from imported products, which undermines growth and investment,” he said.

According to the executive, despite expectations of price improvements and lower production costs, especially in iron ore, CSN chose to bring forward tougher decisions to strengthen its balance sheet. “We are going to solve CSN’s leverage once and for all. We have never committed ourselves in such an objective and pragmatic way for this to happen,” Steinbruch said.

Without providing many details, CFO and investor relations director Marco Rabello said the plan is to sell a minority but “relevant” stake in CSN Infraestrutura and seek the sale of control of CSN Cimentos. According to Rabello, asset disposals will be selective and focused on businesses that can unlock value quickly.

“We will make a relevant sale of a stake in CSN Infraestrutura still in 2026. In the short term, the plan for CSN Cimentos is to seek the sale of control in 2026,” he said.

There is no decision on whether the sale will be total or only a majority stake. For BTG analysts, when it comes to asset sales, as always, the plan will depend on future market conditions and valuation discussions, which could prove complicated.

For CSN Siderurgia, the company rules out a direct sale and is betting on forming strategic partnerships as a way to reduce debt. The energy arm will be kept in the portfolio, as it delivers returns with profitability above 30%.

The decision comes as CSN seeks to reinforce financial discipline amid a challenging environment for the steel sector, marked by price volatility, increased international competition and pressure on margins.

CSN Mineração will be excluded from the divestment package. CSN holds nearly a 70% stake and does not want to sell any portion to raise funds. The company ranks among the world’s seven largest iron ore exporters and, according to executives, the asset maintains high operational performance with margins above 40%.

For Artur Bontempo, principal iron ore and steel analyst at consultancy Wood Mackenzie, CSN’s strategy involves a spin-off of the infrastructure area without losing control, using the sale of stakes as a deleveraging tool. The move allows debt reduction without giving up strategic assets and creates room to direct capital to higher-margin projects.

“The point is to make investments viable and expand mining’s access to capital to complete relevant projects. In steelmaking, the trend is for lower direct investment by CSN. Brazil’s steelmaking park is old and requires modernization, and these investments should come from strategic partners, especially Asian or European groups, bringing capital and technology,” he said.

The announcement did not necessarily take the market by surprise, as leverage has long been a known issue and the company has been moving to dispose of non-strategic assets. The first step was the sale of 11% of MRS to CMIN for R$3.35 billion in 2025.

*By Robson Rodrigues  — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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São Paulo Bar Association calls for Supreme Court code of conduct

Topic gained relevance with recent controversies involving decisions by justices on Banco Master case

 

 

 

 

 

01/19/2026

The mounting public pressure for the establishment of a code of conduct for Brazil’s Federal Supreme Court justices have reinforced the work of a group created by the Brazilian Bar Association in São Paulo (OAB-SP) to discuss the modernization of the country’s justice system. The Commission for Studies on Judicial Reform is about to finalize its discussions on ethics and integrity, with a view to strengthening the Justice system at a time when it is acquiring more prominence in Brazil.

The establishment of a code of conduct for justices of superior courts is a flagship policy of Chief Justice Edson Fachin, and has the support of the commission, formed by renowned experts and members of the OAB-SP. Among its prominent members are former chief justices Ellen Gracie and Cezar Peluso and former ministers of Justice José Eduardo Cardozo and Miguel Reale Junior.

According to the commission’s schedule, its proposals will be presented to the Supreme Court and the National Congress by the middle of the year. Issues such as term limits for ministers, rules for recusal and disqualification (when a magistrate abstains from judging a case), and monocratic (individual) decisions are also on the workgroup’s agenda.

After the recent controversies involving Supreme Court justices, the commission is shielded from any accusations of bias because it has been debating these issues since its creation in June 2025, according to the president of the OAB-SP, Leonardo Sica.

“Our work is isolated from these cases, precisely so as not to personalize or contaminate the debate. The outcry only proves that this is an urgent need. And we do not have a vision of antagonism or revenge against the court. On the contrary, [our work] is a defense [of the court]. We want to strengthen it, because we need a solid, independent and credible Judiciary,” Sica says.

In a speech at the launch of the commission, Peluso stressed the need to protect the Judiciary at a time when “criticisms that contribute to its disrepute” are intensifying. Along the same lines, Gracie said that the crisis “will not be resolved only with the judges,” nor “against the judges,” but rather with the participation of the whole society.

Sica understands that lawyers must also contribute to what he calls a “great effort to adjust ethical conduct” and observe limits to their actions. “Legal professionals must make the effort to submit to rules that are consistent with what we expect from the judiciary,” he argues.

The commission is collecting, until February, contributions from the more than 380,000 professionals registered with the OAB-SP on the functioning of the justice system. The form for submitting contributions, which will serve as the basis for the final document, asks lawyers about aspects such as the slowness of the judiciary, the way Supreme Court justices are chosen, and disrespect for consolidated jurisprudence in the higher courts.

“The path towards improving republican mechanisms of transparency and control of all branches of government, including the judiciary, is an inevitable and essential path for the development of democracy,” says Patrícia Vanzolini, former president of the OAB-SP and also a member of the commission.

Vanzolini downplays internal resistance in the courts to new rules, noting that there are also members making public statements of support, and says that “the establishment of a clearer and more rigorous code of conduct for the judiciary” is fundamental. In her view, “express support” from society for the cause is key for the debate to move forward “in a transparent way.”

In addition to the OAB-SP, organizations such as the Fernando Henrique Cardoso Foundation are involved in the discussions. The organization linked to the former president Fernando Henrique Cardoso sent a proposal for a code of conduct to the Supreme Court in October, including provisions such as the disclosure of remuneration or benefits received for participation in external activities.

Some of the jurists who contributed to the foundation’s document are also members of the OAB-SP commission, such as Peluso, Cardozo and law professor Oscar Vilhena Vieira, from FGV Direito SP.

In parallel, a manifesto initially signed by economists, businessmen and intellectuals was launched in early December and later opened to the general public for signatures on the internet. By Friday (16), the document requesting the establishment of rules of conduct had gathered more than 14,000 signatures.

Reached by Valor, the Supreme Court did not immediately respond to requests for comment.

*By Joelmir Tavares — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Biofuels boom lifts agroindustry investments to R$60bn

Corn ethanol surge drove record infrastructure and industrial plans in 2025, a Valor survey show

 

 

01/19/2026 

Agribusiness and infrastructure projects announced in Brazil for 2025 totaled more than R$60 billion, according to an exclusive survey by Valor based on data from consulting firms, industry associations, and press releases. A wave of new corn ethanol plants accounted for a significant share of that figure.

Last year alone, investments announced in corn ethanol production capacity reached R$41 billion, according to a study by consultancy FG/A conducted for Valor.

These funds will be allocated to 44 projects that, if completed, will add 12 billion liters per year to Brazil’s ethanol production capacity. The largest investment was announced at the end of 2025 by Inpasa: R$3.5 billion for a new plant in Rondonópolis, in the state of Mato Grosso, and the expansion of its Nova Mutum facility, also in Mato Grosso.

The total investment pledged for corn ethanol in 2025 surpasses the R$30 billion invested in sugarcane ethanol projects between 2009 and 2012, according to a 2009 survey by Valor.

Willian Hernandes, partner at FG/A, said the corn ethanol boom is driven by the segment’s attractive profit margins and favorable financing conditions.

With Brazil’s abundant corn supply, the cost of producing ethanol from the grain has become more competitive than sugarcane-based ethanol, allowing the product to reach new markets. “It’s an opportunity to sell a higher value-added product [than corn], and the infrastructure is already in place,” said Felippe Serigatti, a professor at FGV Agro.

To navigate high interest rates, many of the announced investments were financed through the Brazilian Development Bank (BNDES) Climate Fund, which offers loans at around 8%. That was the case with São Martinho’s plant expansion in Boa Vista, Goiás state. Inpasa, Brazil’s leading corn ethanol producer, has funded its projects entirely with cash flow.

Another key driver for the surge in projects was the increase in the permitted blend of anhydrous ethanol in gasoline, enabled by Brazil’s Future Fuel Law. The law allows the government to raise the blend to as much as 35%, pending technical studies.

Biodiesel and soy

The biodiesel production chain also saw multi-billion reais in investment announcements in 2025, though on a smaller scale. Soy processors planned at least R$5.9 billion in investments through September 2026, according to the Brazilian Association of Vegetable Oil Industries (ABIOVE).

These investments are focused on soybean crushing and oil refining and represent a 2.4% increase over the previous 12-month period.

In addition to ABIOVE’s tally, one of the highlights in 2025 was a R$1 billion investment announced by Frísia Cooperativa Agroindustrial, based in Carambeí, Paraná state. The plan includes a soybean crushing facility and warehouses in the states of Tocantins and Paraná, as well as expansions in other business lines such as dairy, pork, seeds, and forestry.

Daniel Furlan Amaral, ABIOVE’s director of economics and regulatory affairs, said the investments are largely aimed at meeting domestic demand for soybean oil used in food and biofuel production.

“Without biodiesel, Brazil’s crushing capacity would likely be much smaller. Oil production has been the main lever for increasing soybean meal output, which has helped lower animal feed costs and encouraged both semi-confinement and full confinement in livestock farming,” he said.

Meatpackers announced at least R$1.54 billion in domestic investments last year, and an additional $1.06 billion abroad, according to Valor’s tally. Most of the capital will go toward expanding production lines at existing plants to meet rising global meat demand.

Another R$7.6 billion in investments covered other agribusiness segments, from dairy and coffee to fertilizers, seeds, and potato processing plants. Argentine agribusiness firm GDM alone pledged R$1 billion over five years, while Brazilian cooperative Coamo announced a R$3 billion investment in a new port terminal in Itapoá, in Santa Catarina state, slated to begin operations in 2030.

Serigatti, from FGV, said that despite Brazil’s benchmark interest rate being at 15%, which discourages investments, “in the long term, the fundamentals support agribusiness as one of the most investment-intensive sectors.” “Among the country’s major industries, it has been the most successful in integrating into global value chains. It benefits from both a strong domestic economy and favorable conditions in international markets,” he added.

Citibank analysts also see growing global demand for food, with Brazil standing out as one of the few regions with significant potential to expand agricultural output. According to the bank, investments are being driven by the expansion of grain acreage—particularly through pastureland conversion—and the growth of biofuel production.

However, Citi forecasts a potential decline in agribusiness investments in 2026. “That’s due to the current challenging environment, marked by high leverage, elevated base rates, tight credit, and squeezed margins for producers. We believe most companies will prioritize resilience and debt reduction over the next year,” said Citi analysts Gabriel Barra and Renata Cabral.

*By Camila Souza Ramos, Nayara Figueiredo and Cibelle Bouças — São Paulo and Belo Horizonte

Source: Valor International

https://valorinternational.globo.com/

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Açotubo prepares corporate reorganization, aims for US market

Consolidation of distribution operations creates a company with R$600m in share capital and more than R$1bn in assets

 

 

 

01/12/2026 

The steel distributor Açotubo is preparing a corporate reorganization to unify the group’s business taxpayer IDs, currently concentrated primarily in Açotubo and Artex. The reorganization, which involves a shareholders’ agreement, will result in a share capital of about R$600 million in the companies linked to distribution, in addition to assets exceeding R$1 billion, the company’s CEO, Bruno Bassi, said in an interview with Valor.

The group’s remaining industrial companies have combined assets of more than R$500 million. At the same time, the company is advancing its plans to enter the American market, a move that is part of its strategy to improve efficiency, expand internationally, and enhance transparency for customers and investors.

Despite the reorganization, the shareholding structure remains practically unchanged. The company remains family-owned and privately held, with a board of directors comprising the three founders and two independent members.

“What we are doing is a reorganization to capture synergies, reduce redundancy, and provide more clarity for the market and customers,” said Bassi. With the restructuring, Artex ceases to exist as a brand, and all operations will be conducted under the name Açotubo Soluções em Aço, reinforcing the group’s integrated vision.

Today, about 80% of the group’s revenue comes from steel distribution, an activity traditionally associated with the Açotubo brand. The remainder is concentrated in the industrial arm, grouped under Incotep, and includes a joint venture with Vallourec focused on the production of profiled tubes and parts.

According to Bassi, the reorganization seeks to align these fronts. “It is necessary to look at the customer in a holistic way,” he said. The expectation is that, depending on the product line, integration could increase revenue by up to 10%, although the financial impact is still being evaluated.

In terms of performance, the company expects to close 2025 with results similar to those of 2024, with gross revenue close to R$2 billion. This growth has been sustained primarily through international expansion, as margins in the Brazilian market have tightened.

As part of its move into new markets, Açotubo recently incorporated a company with operations in Peru and Colombia, formerly known as SPG, thereby expanding its presence in Latin America. Another important strategic move is to expand internationally beyond South America. The company has been studying entry into the United States market for more than a year and a half—a plan that predates US President Donald Trump’s decision to raise steel import tariffs to 50%.

“The idea is not to export from Brazil to the US, because that wouldn’t leave a margin. We want to act as a local distributor,” explains Bassi. According to him, the strategy involves acquiring an established company in the country. “We imagine that in a short time we will acquire a company. Plan B is to do a greenfield [investment], [building] an operation from scratch,” he said.

Bassi acknowledges that the entry of imported steel is a growing concern in [Brazil’s] steel sector, including for distributors. Although the company makes occasional imports when it cannot find a certain product on the national market, he warns of the effects of subsidized steel.

“Cheaper imported steel is important for the industry, but the subsidy makes the product up to 30% cheaper, which corrodes the national industry,” he says.

On this point, Bassi’s view aligns with the sector’s view that the Brazilian government should implement trade defense measures, particularly for Chinese steel. He also acknowledges that buying from national producers implies paying a premium over the international price, which puts pressure on margins. “We were pressured by margins. There is a lot of imported material coming in, but we have an important partnership with national mills.”

The expectation is for improvement in 2026. Bassi projects average growth of up to 8% for Açotubo, with emphasis on clients in the paper and pulp, mechanical and metal, automotive, and agricultural machinery sectors, among others.

The company’s investment plan remains stable, with approximately R$30 million allocated. In 2026, one focus will be fleet renewal—the goal is to replace one-third of the trucks, totaling about 50 vehicles.

The corporate reorganization of Açotubo is also part of a broader context of diversification of the group, which today operates in four major areas: Açotubo itself, Trialle (an industrial and logistics warehouse developer), Tirreno Finanças (a financial arm and investment fund) and Firenze, an insurance brokerage, the group’s most recent business.

*By Robson Rodrigues — São Paulo

Source: Valor International

https://valorinternational.globo.com/

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Investigation examines alleged ties between Lula’s son and fraud scheme

President Lula’s son is indirectly cited in a phase of a federal investigation

 

 

 

 

01/09/2026 

Brazil’s Federal Police, an agency similar to the FBI, is investigating allegations that Fábio Luís Lula da Silva, the son of President Lula, may have acted as a “hidden partner” of businessman Antônio Carlos Camilo Antunes, known as the “Bald of the INSS.” The information was first reported by O Estado de S. Paulo and confirmed by Valor.

The name of the president’s son was indirectly cited in December during one phase of Operation No Deduction, which is investigating an alleged fraud scheme involving unauthorized discounts applied to benefits paid to retirees and pensioners by the National Institute of Social Security (INSS).

The Federal Police informed Justice André Mendonça of the Federal Supreme Court that it is examining the alleged involvement of Lula’s son. One reference to him appears in testimony given to the Federal Police by businessman Edson Claro, who is linked to Antunes.

Fábio Luís Lula da Silva has not hired legal counsel specifically for the case, as he is not formally under investigation. Marco Aurélio de Carvalho, a lawyer who represents him in other matters, denies any wrongdoing and said he learned of the citation through the press, which he described as “serious.”

“There was no prior communication. I found out through the press, which is very serious,” Carvalho said. “It suggests that methods used during Operation Car Wash are being repeated. He is not accused and has no direct or indirect connection to the facts.”

“He has neither hired nor intends to hire a lawyer for this case. He denies any link to the “Bald of the INSS” and remains completely calm,” Carvalho added. “He was also not surprised by the attempt to implicate him. This is yet another effort to wear him and his family down. What is truly serious is the leak of information from a confidential investigation. We will request that the managing director of the Federal Police investigate these leaks.”

In December, after his son’s name surfaced, President Lula said that any involvement in the alleged INSS fraud scheme would be thoroughly investigated.

“If my son is involved in INSS fraud, he will be investigated. If Fernando Haddad is involved in INSS fraud, he will be investigated,” the president said at the time. “As far as the presidency is concerned, everything will be done to show Brazil that INSS fraud will be dealt with seriously.”

*By Tiago Angelo and Isadora Peron — Brasília

Source: Valor International

https://valorinternational.globo.com/

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New US guidelines favor shipments from Brazil

American government announced a policy to encourage the consumption of animal proteins, to the detriment of ultra-processed foods

 

 

 

01/09/2026 

The United States government announced on Wednesday (January 7) a set of new dietary guidelines for American citizens, valid until 2030, that encourage the consumption of “real food.” The idea, according to the government, is to increase consumption of proteins and whole foods, at the expense of ultra-processed foods, which could benefit sales of Brazilian beef to the US.

Brazil is the main supplier of beef to the American market, which is experiencing a strong decline in cattle supply. This situation, coupled with the announcement of the new dietary guidelines, could open up more space for giants like JBS and MBRF, owner of the American company National Beef.

“American households must prioritize diets built on whole, nutrient-dense foods—protein, dairy, vegetables, fruits, healthy fats, and whole grains—and drastically reduce their consumption of ultra-processed foods,” said US Health Secretary Robert F. Kennedy Jr. in a statement about the new guidelines. “Our government declares war on added sugar,” he said. The recommendation is that animal protein should be consumed at every meal.

Valor has learned that the initial assessment of Brazilian meatpackers is that the measure will, in fact, stimulate meat consumption in the US. This should boost Brazilian exports, which were already at a record high in 2025.

Lygia Pimentel, director of the consulting firm Agrifatto, noted that it is not yet possible to determine the guidelines’ effective impact on Brazilian exporters, but she added, “it is certainly positive marketing to reinforce meat consumption.”

“The US has been at its lowest [beef] production-to-consumption ratio in the domestic market since 2005, so they need to continue sourcing [meat] from abroad. And Brazil comes in as an important partner,” she said.

For Gustavo Cruz, chief strategist at RB Investimentos, the new guidelines helped boost JBS NV’s shares on the New York Stock Exchange. The company’s shares closed up 1.25% on Thursday.

“The tendency is for Americans to prioritize protein,” said Cruz. He believes another factor that has helped increase demand—and, consequently, sales for companies in the animal protein segment—is the popularization of diets and weight-loss drugs.

According to the US Department of Health, the country is facing a crisis that justifies efforts to promote whole foods. Almost 90% of the country’s health spending is allocated to treating chronic diseases, many linked to diet and lifestyle. More than 70% of American adults are overweight or obese, and almost one in three teenagers has prediabetes.

In addition to potential benefits for Brazilian exporters, the new guidelines pleased American agribusiness. “At long last, we are realigning our food system to support American farmers, ranchers, and companies that grow and produce real food,” said the Secretary of the US Department of Agriculture (USDA), Brooke Rollins.

Zippy Duvall, president of the American Farm Bureau, emphasized that the measures reaffirm the importance of rural producers.

*By Rafael Walendorff and Nayara Figueiredo — São Paulo and Brasília

Source: Valor International

https://valorinternational.globo.com/

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