By Luciana Magalhaes
Sao Paulo (Reuters) – Brazilian companies develop acquisition objectives in Argentina, while strengthening staff and stores in a careful bet on the aggressive economic reforms of President Javier Milei who are starting to stabilize the economy struck by the crisis .
Brazilian companies, including consumer goods, services, oil and technology, have told Reuters that they were looking for new businesses or writing expansion plans in Argentina, which emerges from years of chaos economic that had dissuaded investments.
Milei’s difficult austerity measures have helped reduce three -digit inflation, reverse a deep deficit and rebuild reserves, which strengthens investors’ confidence. But the nation is still at the recession, while capital controls complicate business.
“Argentina is back on radar,” said Rodrigo Stefanini, CEO of Latin America operations at Stefanini Group, a Brazilian multinational technology company with planned world income would have reached 8 billion reais (1.4 billion dollars) last year.
The annual sales of the company jumped 15% in Argentina last year and its workforce increased by 10% to around 1,500 people. The CEO told Reuters that the company examined for the first time Argentine acquisition objectives since its entry into the country in 1996, despite an economic perspective which remains uncertain.
“You don’t want to be the first to arrive at the party, because you don’t know if it will be a success. But you don’t want to be the last either, because drinks can be over,” Stefanini says with a smile .
“It is time to take advantage of it, before the arrival of the Chinese and the Americans.”
The proximity and the advantages of the Mercosur’s regional trade in trade block have often placed Brazilian companies before the driving curve of booms and regular Busts of the Argentine economy, although several companies have also been burned.
About 150 large Brazilian companies have maintained a stable presence in Argentina, although some of them have reduced the return operations over the years, according to the Brazil-Argentina Chamber of Commerce based in Sao Paulo.
Federico Servideo, the president of the Chamber, said that Brazilian companies were monitoring economic trends and policy changes – potentially including a relaxation of currency controls – before strengthening capital investments over the next 12 to 36 months.
“There is indeed a reversal of the expectations of Brazilian investors,” said Servideo.
Complete return to Argentina?
The public oil company by Brazil, Petrobras, is considering a new bet on Argentina after having signed a memorandum of understanding with the Argentinian YPF peer last September to explore joint investments in exploration and production.
