The advance of the Chinese over Brazil in that period reached R$ 60 billion and, with an extra boost in recent months, became the largest foreign investors in mergers and acquisitions, surpassing the Americans.
Despite the fact that most transactions closed by the Orientals are concentrated in energy, 97% of the volume contributed in the first half of 2017, there is already evidence of a diversification in the economic segments. Infrastructure, for example, is one of the sectors that will gain space. Learn about the main acquisitions made by the Chinese in Brazil between 2015 and 2017.
Airports and air transport
Chinese conglomerate HNA is among the largest companies in the world, employing more than 400 thousand people. In Brazil, it bought the Odebrecht branch (31%) at the Galeão International Airport in Rio de Janeiro. The group also acquired a 22% stake in Azul Líneas Aéreas, becoming the largest single shareholder of the Brazilian airline. In the area of transport, only terrestrial, China Xiaoju Kuaizhi bought 99 Taxis.
China’s state-owned power company State Grid invested billions in Brazil. Among its acquisitions are: Atlantic Transmission; Montes Claros transmission lines; CPFL Energía (54.6%); CPFL Renewable Energies (48.5%); CPFL Energía S.A (45.4%).
With the acquisition of the Jupiá and Solteira Hydroelectric Plants in November 2015, China Three Gorges (CTG) entered the ranking of the country’s major energy generators. The state-owned Chinese energy company is one of the largest in the country, in the world. They are also from CTG, Duke Energy and PCHs from Triunfo.
Chinese state-owned China Merchants Port Holding (CMPorts) announced earlier this month buying 90% of the Paranaguá Container Terminal (TCP). The CMPort is one of the largest global opponent of container terminals. It has operations in Asia and has container terminals in countries such as the United States, Africa and Europe. In the port sector, the giant China Communications Construction Company, called CCCC, bought the Port of São Luís, in addition to 80% of the construction company Concremat Engenharia.
Founded in 2005 to produce auto parts, Zotye decided to manufacture complete and cheap cars in Zhejiang province. At first, the Chinese announced that it would build an assembly line type CKD in Espírito Santo, but ended up buying TAC Motors, Santa Catarina manufacturer of the TAC Stark jeep, and that has a factory in Sobral, Ceará.
In that segment, two businesses were closed with Chinese institutions. In its first acquisition in Brazil, Bank of Communications bought 80% of Banco BBM S.A. – founded in 1858 and one of the oldest financial institutions in Brazil. The operation is part of Fosun’s strategy to increase its presence in emerging countries and is the group’s first investment in Latin America.
Real estate sector
The Chinese group Fosun, an investment manager with operations in several countries, this year made its second largest acquisition in Brazil, by purchasing the Torre Sucupira, a large office building in São Paulo. Last year, the Chinese manager acquired the control of Rio Bravo Inversiones. The operation is part of Fosun’s strategy to increase its presence in emerging countries.
Chinese company Hunan Dakang bought 57.6% in Brazilian grain trading and processing company Fiagril. This is a new offensive by Chinese companies in the agricultural raw materials sector to ensure the future supply to the Asian giant. China also acquired a stake of 53.99% in the capital of Belagrícola, a company specializing in the sale of means of production for the agricultural sector.
Chinese appetite is high and Asian giant companies are also moving forward in other sectors. Batteries: Shenzhen Center Power Tech bought 59.2% of Unicoba Batteries Holdings; Plastics: Daoming Optics & Chemical bought 51% of Onyx Reflected Fabrics and Films; Mining: China Molybdenum acquired Anglo American Phosphates and Niobium; Machinery: XCMG HK International Corp Development purchased 90% of XCMG Brazil Investment.