Buying for tomorrow. (Editor's Note).Markets always rise higher than anybody hopes and fall farther than anybody fears. But can Latin America's companies get any cheaper than they are right now? As this month's cover story explains, some big players think prices have bottomed out--and they have begun to buy. Roger Agnelli, an investment-banker-turned-mining-magnate, has already acquired all of the major iron ore companies in Brazil. Now he wants to dig into Verb 1. dig into - examine physically with or as if with a probe; "probe an anthill" poke into, probe penetrate, perforate - pass into or through, often by overcoming resistance; "The bullet penetrated her chest" copper, bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. and manganese assets at home and abroad. The CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Companhia Vale do Rio Doce Summary Companhia Vale do Rio Doce (CVRD) is a global diversified mining company, the second largest mining company in the world, and the largest logistics operator in Brazil. is not buying or developing all of these properties alone--too much work and money. Instead, he's sharing the risk with partners. That way, CVRD CVRD Companhia Vale do Rio Doce (Brazilian mining company) CVRD Cowichan Valley Regional District (Vacouver Island, British Columbia, Canada) CVRD Converter, Variable Resistance, to DC Voltage can buy companies now at cheap prices and grow faster in the future. Agnelli tells LATIN TRADE he wants to nearly triple CVRD's current market value to US$25 billion by the end of the decade. Bradesco President Marcio Cypriano sees growth opportunities for Brazil's No. 1 private bank, also through acquisitions and privatizations. Unlike many Brazilian companies facing tougher international competition, Bradesco is not watching and waiting to lose market share. "We cannot sit on our laurels and think that everything's fine," Cypriano tells us. Mexican companies, which have faced a similar onslaught from U.S. companies, don't bat an eye these days when they can buy companies at the right price--even if it means crossing international borders. Led by the likes of billionaire Carlos Slim and bread-maker Daniel Servitje, head of Grupo Bimbo, the region's big players buy today to build for tomorrow. Mike Zellner mzellner@latintrade-inc.com P.S. The Brazilian real has devalued de·val·ue also de·val·u·ate v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates v.tr. 1. To lessen or cancel the value of. 30% since 1999. So why aren't exports booming? Infrastructure's the problem (see page 37). BIG PLAYERS ART DIRECTION: B. Cooper |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion