Internationalization WEG from Santa Catarina: expansion in China, Europe and the Americas
Time to go shopping After the post-recession downturn in business, Brazilian multinationals are starting to invest in the global market again. SUZana CamarGO
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he electrical equipment to WEG, Iochpe-Maxion (also from manufacturer based in the South of Brazil) purchased the the state of Santa Cateri- American company, Hayes Lemna, WEG, announced the merz International a few months acquisition of Watt Drive earlier, a manufacturer of wheels last November, an Austrian compa- and auto parts, in a deal worth ny specializing in the power trans- R$725 million. Also in the second mission sector (an Austrian corpora- semester of 2011, Brasil Foods (BRF) tion that designs and manufactures – created through the merger of Sagearboxes, gear motors, drives and dia and Perdigão, also invested in control systems), with a produc- two new acquisitions overseas. tion plant near Vienna and assem- The Brazilian company acquired bly units in Germany corporate control and Singapore. Watt (two-thirds) of Avex, Drive’s revenues in an Argentine poul2011 are estimated to try producer and exreach 30 million. In porter together with addition to this acits new partner, Flora quisition, and in the Dánica, a manufacsame period, WEG turer of food prodalso acquired Elecucts. In the financial tric Machinery, a unit market, Banco Safra owned by GE Conannounced the purverteam, in the United States and chase of a stake in the Swiss bank, Pulverlux, in Argentina, specializ- Sarasin, at the end of November for ing in the manufacturing and sale of US$1.13 billion. powder paints. In a similar fashion And these were not isolated
Companies gain assets, revenues and employees abroad
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cases, as Votorantim, Gerdau, Vale do Rio Doce, Petrobrás, Bradesco and Camargo Corrêa were among other Brazilian companies that made acquisitions in foreign countries after the global crisis. Several made sizeable acquisitions, of more than US$100 million. “There was a slight decline in 2009, as a result of the global economic crisis, but Brazilian companies began investing again in 2010, increasing their assets, revenues and employees overseas”, stated Lívia Barakat, professor at the International Business Center at the Dom Cabral Foundation. Lívia was one of the researchers responsible for the 6th Edition