Brazil is gaining increasing prominence in the world, mainly due to its economy, which has been growing at a considerable pace in recent years.
According to astudy by Ernst & Young, the “2012 Attractiveness Survey: Brazil," about 60% of multinational companies plan to invest in Brazil by 2013. This makes the country a major investment destination in LatinAmerica. The investment will come from individuals and companies based primarily in the United States, Britain, Japan, Germany and Spain.
The UNC Conference on Trade and Development (UNCTAD) has alsoconfirmed the prominent position of Brazil in the global market, ranking it among the top 10 favorite destinations for investment by 2014.
Brazil offers investors an abundance of raw materials, agrowing market economy and a stable democracy. Above all, it offers a culture with people highly receptive to foreign businesses. Add the sporting events planned for 2014 and 2016, and you get asituation ripe for investment opportunities.
Among the most frequent investment structures utilized by foreign investors in Brazil are joint ventures, mergers and acquisitions.
It has been verycommon to see "business combinations" in the form of joint-ventures in Brazil. Throughout Brazil’s “corporate history,” there have been many examples of joint ventures. For example, "Autolatina", a unionof the car companies Volkswagen and Ford, which occurred in 1987 and lasted until 1996; and "Playtronic," a union between Gradiente, Nintendo and Estrela, which occurred in 1992 and led to the releaseof several video games, including Super NES and Nintendo 64.
In June of this year, Warner Bros. and Fox International announced a new joint venture in order to take advantage of their individualgrowth potential and expand the two brands in Brazil. The joint venture, “Fox-Warner," still plans to start its activities in 2012.
Among the joint ventures mentioned above, there are many others...