BRAZIL Two international consortia won the latest round of Brazilian airport privatizations, in deals totaling $9 billion . One consortium, which includes Brazilian construction company Odebrecht
and Singaporean airport operator Changi, paid $8.24 billion for a
25-year concession to operate Rio de Janeiro's Galeao International
Airport , the country's secondbusiest airport. Another consortium,
including CCR, Brazil's largest highway operator; Germany's Flughafen
MÜnchen, which operates Munich Airport ; and Switzerland's Flughafen
ZÜrich, which operates Zurich Airport ), paid $780 million to operate
Belo Horizonte's Confins International Airport under a 30-year
concession. Infraero, the Brazilian federal airport management agency,
will retain a 49% stake in both airports, with concession winners
holding 51%. The government expects the concessions to attract $5.6
billion in investments at Rio de Janeiro's airport and $2.4 billion at
Belo Horizonte's airport.The auction is Brazil's third airport
privatization program since 2011.
Britain's Jaguar Land Rover became the latest luxury carmaker to expand
in Brazil . The company will invest $437 million to build a new auto
plant in the state of Rio de Janeiro , with construction expected to
begin in 2015. Earlier this year Germany's Mercedes Benz and Audi
announced plans to restart production in Brazil . The two German
automakers, along with BMW , plan to invest a total of $220 million in
local production facilities. According to a 2012 McKinsey report, sales
of luxury cars are growing by 45% annually in Brazil . Daimler, Mercedes
Benz's parent company, predicts Brazil's demand for luxury cars will
triple by 2017. Brazil's Vale, the world's largest iron ore producer,
reached a $9.6 billion settlement agreement with the Brazilian federal
government over a pending tax case. The figure is half of what the
government had claimed it was owed by Vale for taxes, interest payments
and penalties accrued between 2003 and 2012.Vale officials say payments
will be made in installments and will not requiretaking on
any new debt, as the company will use its cash flow. Shareholders are
expected to receive dividend payments, despite the payout.The case had
prompted tensions and litigation between federal authorities and one of
Brazil's largest companies. - Antonio Guerrero