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Brazil is emerging from its largest economic downturn ever and has a new government elected. The upcoming president, who will take office on January 1st, 2019, and his team have announced they want to privatize several government-owned companies.

The Brazilian Federal Government is a major shareholder in several companies in industries such as banking, lottery, oil and gas (upstream and downstream), energy (electricity), logistics, health services, IT services and others. In addition to those, the 27 Brazilian states own and/or have major stakes in companies in industries like mining, energy, water, IT services etc.

The scenario is not clear yet and the terms for deals, the steps to be followed and the requirements for participants in privatization bids still need to be determined and publicized. It can be expected that Brazil’s Development Bank (BNDES) will play a role in the privatization process – potentially structuring deals and even funding investors interested in taking assets over.

The opportunities:

  • To set up global funds to invest in the upcoming Brazilian privatization process.
  • To take over companies with relevant market positions and assets in Brazil.
  • To advise investments in Brazil.

 

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