Tag Archives: Brazil

Brazil’s Oi & Portugal Telecom Merger Approved by Competition Regulator

OiBrazil’s Administrative Council for Economic Defense (Cade) approved without restrictions the merger of mobile network operator, Oi and Portugal Telecom, according to Reuters.

The decision by the competition regulator supported the claims of the two companies that the merger does not generate significant vertical or horizontal concentration in the market.

Oi and Portugal Telecom announced the merger in October 2013, yet it still remains subject to approval by shareholders.

Telecom Italia rejects claims of TIM Brasil sale

Telecom Italia has rejected claims that TIM Brazil is up for sale and affirmed its commitment to the Brazilian mobile operator. Recent reports said that Telefonica, the Italian operator’s largest shareholder, was considering a plan to break up TIM Brazil in order to comply with an order from the Brazilian regulator to limit its activities in the market. Telefonica already owns the largest mobile operator in Brazil, Vivo, and after recently increasing its stake in Telecom Italia, may be able to also influence TIM Brasil.

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Embratel to invest 2.2 billion BRL in Claro Brasil

Brazilian fixed line operator Embratel Participacoes plans to invest BRL 2.2 billion in mobile network operator Claro Brasil. Both companies are owned by America Movil. The initiative follows a board meeting in April, when Embratel, Net Servicos and Claro agreed to consolidate their activities and integrate fixed and mobile operations.

Embratel’s investment will be made in the form of purchase of Claro shares, giving Embratel a minority stake in the company. According to Embratel, the investment should facilitate the merger of the fixed and mobile platforms and the offer of integrated services to customers.

Vodafone enters Brazil market with Datora Telecom partnership

Vodafone has launched Vodafone Brazil with Datora Telecom and plans to develop and offer machine-to-machine (M2M) products to business customers in the region. Under the Vodafone Partner Market agreement, Vodafone’s non-equity partner Datora Telecom will re-brand its mobile arm to Vodafone Brazil, effective immediately.

Datora Telecom will also work with Vodafone Group Enterprise to develop and offer machine-to-machine (M2M) products and services to business customers, with unified voice and data mobile communications services and advanced enterprise roaming propositions to follow in 2014.

Vodafone says its new Vodafone Brasil partner market relationship with Datora Telecom will help support the growing number of multinational companies looking to expand in Brazil. Around half of Vodafone’s 1,700 multinational customers already have employees based in the country, and the trend is expected to continue. In 2012, Datora Telecom set up a dedicated M2M unit and has now installed more than 230,000 M2M connections for corporate customers

Petrobras Sells $11 Billion in Bonds: Highest sale ever in Latin America

On Monday, Brazil’s powerhouse state-run energy firm Petroleo Brasileiro SA (Petrobras) unloaded $11 billion of global debt in what’s been reported as the largest bond offering by a Latin American company in history. The deal was split six ways, with maturities ranging from 3 to 30 years, of both fixed-rate debt and floating-rate debt. According to inside sources, investors made bids as high as $50 billion for the bonds, demonstrating a strong demand for these types of high-rated emerging market companies.

Petrobras confirmed that it has already received more than half of its $20 billion goal this year, which will be slated for investment in oil production and expanded exploration in the near future. The Brazilian oil firm also announced it has plans on spending $237 billion over the next four years in what many analysts say will be the largest corporate investment plan by a single company in the world.

The last time Petrobras sold debt, in February 2012, the company raised $7 billion, which by all standards was still a significant achievement. They did this by offering bonds comprised of four different maturities, in a similar spit as their most recent venture this Monday. With this move, timing is everything. Petrobras is also expected to participate in a Brazilian oil and natural gas rights auction later this week, putting it in a great position after Monday’s bond sale.

 

This latest deal was facilitated on a massive scale by many of the world’s top financial institutions, including the Bank of America Corp., Banco do Brasil SA, Citigroup Inc., HSBC Holdings PLC, Itaú Unibanco Holding SA, JPMorgan Chase & Co., and Morgan Stanley & Co. The sale also had an effect on the global currency market, driving up the value of the Brazilian Real, increasing 0.6%, and making the only positive motion against the dollar by a major currency. The Real is rallying on speculation Petrobras will exchange some of the money it raises from Monday’s bond sale into local currency.

To find out more about Petrobras, and to get the most comprehensive access to all of the top Oil, and Natural Gas businesses in Latin America, contact us today, and take Latin Target for a test drive. We get you up-to-date information, and unmatched access to all of the top decision makers on the continent.

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Roberto Azevêdo: First Latin American Nominated as Head of WTO

Roberto AzevêdoThe World Trade Organization has nominated the first Latin American to ever head up the group in its 18-year history, giving the nod to 55-year-old Brazilian  member Roberto Azevêdo. Azevêdo will take charge starting on Sept. 1, 2013, and serve a four-year term as Director General. Roberto Azevêdo had previously served as Brazil’s ambassador to the WTO since 2008, and just barely beat out another Latin American, Mexico’s Herminio Blanco. Blanco, who served as Mexico’s Trade Minister previously, was reportedly the 1st choice of both the United States and European Union.

While entering the position as a newcomer, Azevêdo has had plenty of time to get to know the WTO, and wants to help resurrect its image as a driving force in international trade negotiations, rather than just an international policy-keeper. During his first press conference after the nomination last week, Azevêdo said that “The negotiating pillar of the WTO is completely stuck. There is a clear paralysis in the system. We have a trade agenda that we have to broaden and tackle.” His hopes to revamp the global trade group’s structures did not fall on dead ears, and he’s already got the support of many of the organizations key members, as well as politicians, furthering the call for change.

“By nominating Ambassador Azevêdo as a candidate for this high office, Brazil was confident that his experience and commitment could lead the organization towards a more dynamic and fair world economic order,” said Brazilian President Dilma Rousseff in a statement released to the press. “Still under the effects of the global crisis that began in 2008, it will be up to the WTO in the coming years to give a new, balanced and vigorous impetus to world trade, which is fundamental for the global economy to enter a new period of growth and social justice.’’

The selection of Azevêdo as WTO head speaks volumes of what many consider to be a global shift in economic order; one that stands to benefit Latin America, as well as many other parts of the developing world. “His selection is pretty significant both for Latin America and also for the emerging nations as well as the least developed nations on the globe,’’ said Felipe Berer, a trade attorney with Akerman Senterfitt in Miami. “It symbolizes the new economic order.”

In the past, organizations like the WTO simply overlooked the needs of less-developed nations, including Azevêdo’s own Brazil. However, these days are over, and with new leadership from the region itself, look to be changing sooner than later. This isn’t to say that the WTO will dramatically alter its focus to Latin America, but rather that it will change its focus to include more emerging economies; something that it simply can’t ignore in the new millenium

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America Movil Ponders Merging Cable TV, Telecom Operations in Brazil

Things are heating up in Brazil over broadband as America Movil has publically announced studying the possibility of streamlining its Brazilian operations by merging its cable TV operations with its fixed and mobile carriers. According to America Movil the move could be the best way to gain ground in the hotly competitive Brazilian communications market.

While nothing is set in stone, the plan would structurally integrate Embratel Participacoes, the country’s 3rd-largest wire-line telecom, with mobile operator Telecom Americas, and cable TV operator Net Servicos de Comunicacao. Before the merger is taken to the next phase, however, the companies must carefully look at their options, and no deal has been made yet.

Last year, Mexico’s America Movil blew away the pay-TV competition in Latin America by merging all of its regional operators (Net Servicos, Telmex, Telmex International) to create one solid entity. In doing so, they have swallowed up the competition, holding 22 percent of the regions 51 million subscribers, making it the leader on the continent.

A similar move was made successfully last year by Telefonica, who merged their mobile and fixed-line divisions in Brazil into one single unit.

Many suspect that this may have been inspired by America Movil’s 2012 4th quarter revenue dip. Which was a bit less than previous gains, holding at USD $ 16.2 million. With this new announcement, America Movil plans on kick-starting their Brazilian revenue stream by reorganizing its sources, and making the overall market value more efficient.

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