segunda-feira, 6 de setembro de 2010

Economy: Brazilian multinationals and the purchase of Burger King

The world really is flat. In the globalized economy Brazilian companies exhibiting muscles fueled, advance purchase of icons of the international economy.

The phenomenon, in the case has nothing to do with the player Ronaldo, is being widely circulated in the wake of the increasing rise of Brazilian exports.

In the last decade acquisitions and mergers contributed millions to the strong presence of the "Brazil Brand" in the world. Brazilian companies become global scale and create win to become leaders in export, not only more commodities.
The offer to purchase Burger King presented yesterday by a group of investment capital in Brazil, as well as the acquisition of Anheuser-Busch (two years and involving some of the same investors), is emblematic of these transactions that seem to symbolize the emergence of a new protagonist in world affairs.

But that was predictable since a long time. The growth of the Brazilian economy in recent years has created a whole class of wealthy entrepreneurs looking for opportunities to invest their fortunes and not let themselves be frightened by the idea to try his luck beyond Brazil's borders.

Traditionally, Brazilian business has always been dominated by an elite often cautious, based in Sao Paulo, the industrial and financial hub of the country. But the skyrocketing cost of the last ten years has changed the picture.

According to the Boston Consulting Group, between 2006 and 2008 the number of Brazilian millionaires rose by almost 70% from 130 000 to 220 000. It's a remarkable statistic.

With about one-sixth of India's population, another member of the BRICs, Brazil has more millionaires than the Asian country. And the club of billionaires, even more unique, is also growing at a pace unprecedented in Brazil.

Jorge Paulo Lehman, important figure in the acquisition of Anheuser-Bush and supply the Burger King, an executive of investment is well prepared, educated at Harvard, the son of Swiss immigrants. But many of the new rich people in Brazil are more rustic origins and enriched after starting life humbly, following a model very familiar to Americans.

The airline TAM, who in August announced a merger with Lan Chile and will become the largest sector in Latin America, was established in the '70s as a modest cargo airline.

The driving force in the case of TAM was Rolim Amaro, a former pilot of humble origins who ran the company and so bold and savvy to die in helicopter crash in 2001.

FRIBOI

But perhaps the most intriguing and dynamic new Brazilian businessmen is Joesley Baptist, who began working as a boy in his father's butcher shop in Goiás, and today commands the JBS-Friboi, the largest global meat processing.

When Brazil experienced a currency crisis in 1998 and early 1999, Batista and his brothers understood the time not as a threat but as opportunity to gain export market, and obtained loans from BNDES to put the idea into practice .

Additional capital was raised by an initial public offering of shares and in 2007, JBS-Friboi took control of Swift, another American brand known. In 2009, Pilgrim's Pride added to your list, and that helped his company to overcome the Tyson Foods and reach the world market leader in meat processing.

Moreover, today said that billionaire Joesley Batista overcome Tyson Foods was just "the first step" of a broader strategy that involves making JBS-Friboi also a power in the business of milk and dairy products. Thus, as to predict what might happen?

One thing is clear, however: the Brazilian domain over all stages of the global meat industry. The country is already the largest exporter of beef and now, with the offer by Burger King, will have another vehicle to encourage the consumption worldwide.

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