Carrefour prepare an initial public offering for its Brazil unit

Reuters published that the French retailer Carrefour SA (CARR.PA) hired two investment banks to prepare an initial public offering for its Brazil unit. The listing of its operations, including hypermarket brand Carrefour and wholesale brand Atacadão, should begin in earnest in January, according to the report, which did not indicate how the information was obtained.

Carrefour is the second-biggest retailer in Brazil and its local operations are worth an estimated 15 billion reais ($6.8 billion), Exame reported, based on revenue of 31.4 billion reais last year.

Carrefour hired the investment banking unit of Credit Suisse Group and Itaú BBA, a unit of Brazil’s biggest bank, Itaú Unibanco Holding SA (ITUB4.SA) for the preparations, according to Exame. Through its press office, Itaú BBA denied the report.

Representatives for Credit Suisse Group could not immediately be reached on Thursday evening.

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Brazil count on a good strong breeze

According to The Washington Post journal, with its abundant dams and rivers that carry more fresh water than any other country, Brazil — big and bountiful — essentially runs on hydropower. But it turns out that the country can also count on a good strong breeze.

No one expects that wind will outpace dams as the main source of electricity here. But the goals remain audacious for a country that projects an annual increase in electricity consumption of up to 5% in coming years.

It’s an expansion that planners believe makes perfect sense, allowing Brazil to avoid an energy crisis like the one in 2001 — when drought led to nationwide blackouts — while diversifying with a new source of power that is far cheaper and more efficient than it was just five years ago.

“Wind is the perfect complement for the hydro base that we have in Brazil,” said Mathias Becker, president of Renova Energia, a São Paulo wind energy company founded 12 years ago with $5,000 and now worth nearly $1.5 billion. “When it rains, we don’t have wind. When the wind blows, there is no rain”.

Wind still accounts for only about 3% of the energy-producing capacity in Brazil, with its 200 million people. But it has reached that level at a blisteringly fast pace. Just four years ago, in 2009, the government held its first auction for companies vying to build wind farms.

Read all the article here.

Brazil’s videogames market “goose that lays the golden eggs”

The Brazilian newspaper website published that the German market research institute GFK analyze the Brazilian videogames market. According to GFK’s Oliver Romerscheidt, trends for Brazil are contrary to those for the rest of the world. ‘Despite high prices, the Brazilian market continues to grow, whilst figures are negative for almost all of Europe. Brazil is the goose that lays the golden eggs’, he said.

Also, the institutes reveals that the Brazilian videogames market is now worth more than those of the United Kingdom, Germany and Spain respectively. Of all the European countries, only France remains ahead.

GFK also revealed that videogame sales increased 25% from 2012 to 2013. The preferred genres of Brazilian gamers are adventure, sports (principally football games) and shooting games.

Read all the piece here.

Daimler Trucks invests one billion real in Brazil

According to Reuters, the German automotive group, Daimler will invest around 1 billion real ($458 million) in its two Brazilian commercial vehicle plants between 2014 and 2015.

The financing will be placed mainly in research and development of new products and innovative technologies, as well as in process optimisations and modernization of the two production plants São Bernardo do Campo (Federal State São Paulo) and Juiz de Fora (Federal State Minas Gerais).

Also, recently, Daimler’s luxury car business Mercedes-Benz announced it would invest initially around 170 million euros to build a new factory near São Paulo that would manufacture the C-Class mid-size and the GLA compact crossover for the local market.

Read all here.

Will emerges some Zuckerbergs from Brazil?

The website bring an article that says the most optimists predict that some Zuckerbergs will emerge from the slums of Sao Paulo before the end of this decade and pessimists believe that unless structural changes take place, especially in the legal and tax system, only a few tech entrepreneurs will manage to thrive in Brazil.

The piece introduce facts how: consumers in Brazil spend more than 27 hours per month online on their computers (global average: 24.7 per month); 23.3% of Brazilians use their phones to access the internet; mobile phones and tablets are becoming more important to the Brazilian internet landscape; 13% of Brazilians use their phones to compare prices while visiting shopping stores in person; there are 2835 startups in Brazil; the Brazilian internet audience is young on average; 60% of Brazilian residences lack internet access; household penetration was measured at 43% in urban zones and 10% in rural areas; fixed broadband technology, such as DSL and cable, accounts for 68 percent of household internet connections in Brazil; in Brazil, 36% of online time is spent on social media.

Thus, the optimistic foreigner tech entrepreneurs willing to move to Brazil should investigate Startup Brasil, a government program similar to Startup Chile that supports technology-oriented startups and attracst foreign talent. Startup Brazil will award 100 technology-based startups per year– including foreign-owned companies – an estimated total of US$ 20 million in public and private investment to develop their products and services. The first edition of Startup Brasil was launched early this year, selecting 56 tech companies and 12 incubators.

Brazil´s startup scene scattered throughout the continental country that is home to 200 million people. There is not one singular region that can be considered Brazil´s Silicon Valley. Some people even believe that the next Jobs could be Brazilian. 

Read here.

Inbursa talk to Buy Standard Bank’s Brazil Unit

According Bloomberg, the Financial Group Inbursa SAB (GFINBURO), the bank controlled by billionaire Carlos Slim, is in talks to buy Standard Bank Group Ltd. (SBK)’s Brazil unit for about 130 million reais ($59.3 million), two people with direct knowledge of the negotiations said.

Acquiring a bank is the easiest way to get a license and enter the Brazilian market, said one of the people, who requested anonymity because the talks are private.

Banco Standard de Investimentos S/A, as the Brazil unit is known, had 500 million reais of assets in the country as of June, 82% less than the 2.9 billion reais reported a year earlier, according to Central Bank data. Total capital decreased 60% to 130 million reais.

Inbursa, a lender to businesses and consumers with operations that are mostly concentrated in Mexico, is making more investments abroad. Its participation in a syndicated loan to YPF SA resulted in Inbursa receiving shares last year after the Argentine oil producer defaulted.

Read the original text here.