Internationalization of Brazilian companies gains pace, says Citi executive
Gaurang Hattangdi and José Alberto Benamor point to the search for scale, global tariffs and Paraguay as drivers of the movement.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM ESTADÃO · 2 MIN
The internationalization of Brazilian companies is on the rise, according to the new head of Citi's Commercial Bank for Latin America. In his first interview with the Brazilian press since taking office, Gaurang Hattangdi told Estadão that the movement is growing and follows a global trend.
Hattangdi cited two main reasons for this search for foreign markets: the search for scale and the reaction to the increase in global trade tariffs. For him, international expansion is one of the best options for companies that are prepared to grow beyond borders.
José Alberto Benamor, the new head of Commercial Banking at Citi in Brazil, gave his first interview in the area to Coluna. According to him, the unit serves companies with annual revenues between US$10 million and US$3 billion, a range in which this expansion agenda tends to appear more strongly.
Among the most recent movements, Benamor highlighted Paraguay. According to him, Brazilian companies see the possibility in the country of reducing the burden of some taxes and receiving incentives from the local government. Furthermore, they evaluate Paraguayan labor capabilities as good, a factor that weighs in the decision to set up operations in the territory.
For the reader who follows the stock market, the table shows that the expansion agenda abroad is no longer exclusive to large groups and is now also considering medium-sized companies, which seek scale and alternatives in the face of trade barriers.
What changes for the investor
In a higher tariff environment, expanding abroad can be a way for companies to diversify revenues and reduce dependence on a single market. For those who invest in shares, it is worth observing in the balance sheets and earnings conference calls whether this strategy appears in a concrete way, with defined investments, costs and goals. This article does not provide a purchase or sale recommendation and does not project asset prices.
Automatically translated from Portuguese.
