Brazil Inc makes careful bets on Argentina’s conversion under Mylei
By Luciana Magalhaes
São Paulo (Reuters) – Brazilian companies are scoping Argentina’s acquisition targets, but staff carefully bet on President Javier Mairei’s aggressive economic reforms, starting to stabilize its crisis economy We are strengthening our stores.
Brazilian companies, including consumer goods, services, oil and technology, told Reuters they are trying to draft an expansion plan that has emerged from years of economic turmoil that launched new ventures in Argentina and thwarted investments. .
Milei’s strict austerity measures helped to curb triple digit inflation, reverse the deep deficit, rebuild reserves and boost investor confidence. But while the country is still delving into the recession, capital controls complicate the business.
“Argentina is back on the radar,” he said, adding that Rodrigo Stefanini, CEO of the Latin American business of Stefanini Group, a Brazilian multinational technology company that is projected to reach around 8 billion Reais ($1.4 billion) last year. He said.
The company’s annual sales increased 15% last year in Argentina, and its workforce rose 10% to around 1,500 people. The CEO told Reuters that the company was considering its Argentina acquisition target for the first time since entering the country in 1996.
“You don’t want to arrive at the party first because you don’t know if it will hit or not, but you don’t want to be the last either, he said with a smile.
“Now is the time to take advantage of the Chinese and Americans before they arrive.”
The proximity and perks of the region’s Mercosur trade bloc have sparked Brazilian companies, but riding on the regular boom and bust of the Argentine economy, drive Brazilian companies ahead of the curve It’s there.
According to the Brazilian Argentina Chamber of Commerce and Industry, around 150 major Brazilian companies are steadily present in Argentina, but some have been cutting back on their activities over the years.
Federico Servideo, president of the Chamber of Commerce, is looking at economic trends and policy changes that could include lax currency management before Brazilian companies increase capital investments in the next 12-36 months. He said.
“There’s certainly a reversal in expectations from Brazilian investors,” Servidde said.
Will you be back in Argentina completely?
Brazilian state-owned oil company Petrobras is considering a new bet on Argentina after signing a memorandum with Argentina’s Peer YPF last September, exploring research and co-investment in production.