Casino-GPA: Either he goes or I go
The battle between Abilio dos Santos Diniz and his French partner Casino over control of their Brazilian retail venture, Grupo Pão de Açucar, has entered the territory of slapstick comedy.
When rumours of the deal first leaked in May that Mr Diniz was talking to Carrefour about doing some kind of deal involving the French group’s Brazilian assets, Casino was furious that its partner of many years would talk to its arch-rival. Continue reading »
Americas market wrap
Latin American markets enjoyed solid gains on Tuesday as risk appetite was up on hopes that the Greek parliament will vote in favour of the austerity package dicated by the IMF and EU in order to get aid. Region’s currencies also strengthened on expectations that Greece will avoid default on its sovereign debt. The MSCI Latin America index rallied 2.18 per cent, its biggest one-day gain since February. Continue reading »
Come get your MBA in…Cuba?
Havana may not yet rival Harvard, but an MBA course is shortly to be launched in the communist-ruled Cuban capital. Che Guevara might be turning in his grave.
The invitation to the MBA course has been extended by the Archdiocese of Havana, in conjunction with the San Antonio Catholic University of Murcia in Spain. Only 40 places are available. The course will form cadres for a still tiny private sector in Cuba that is expected to grow rapidly under reforms announced recently by President Raúl Castro. Continue reading »
South Africa: nationalisation debate heats up
The debate over nationalisation of South Africa’s mines has taken on new impetus over the past 10 days in the wake of the re-election of Julius Malema, the influential leader of the ruling African National Congress’s Youth League.
He is the main force – at least publicly – behind the push for the hugely important sector to be handed over to the state and his re-election and reiteration of the need for nationalisation visibly rattled many in South Africa’s liberal and business circles. On Tuesday, it was the turn of Blade Nzimande, the secretary general of the South Africa Communist Party (SACP), to wade in. Continue reading »
Turkey: Crunch time for re-elected government
The impressive scale of AK party’s re-election victory reflects the achievements of Tayip Erdogan’s regime in bringing political and financial stability to Turkey.
Now is time for the government to turn its attention to more pressing issues, according to Tuesday’s FT special report on Turkey. Continue reading »
UAE: rates cut, housing rebound to follow?
The UAE’s increasingly liquid banks are cutting mortgage rates as they look to claw their way back to growth.
The country’s housing markets, especially in Dubai, have been taking a beating for a few years, with prices falling dramatically as supply outpaced demand. Could the easier availability of mortgage finance boost those anemic housing markets? Continue reading »
Diageo: cheers, or 干杯 !
It may seem like the final humiliation: this week Wen Jiabao, the Chinese premier, told the British not to lecture him on human rights, and senior Chinese officials in London whispered that the UK “is now viewed less favourably [commercially] in Beijing“. Meanwhile in Beijing, Britain’s most famous drinks company was hitching its star to Chinese firewater.
Diageo said on Monday that it had received Chinese antitrust approval to take control of one of China’s most famous brands of baijiu, or white spirit – an Asian liquor which little Englanders are sometimes tempted to compare with paint stripper. Continue reading »
Estáter – the dealmakers behind Brazil’s retail war
There must have been the sound of wailing and gnashing of teeth above Avenue Kléber in Paris on Monday night when news arrived at Casino’s head office that its Brazilian partner, Grupo Pão de Açúcar (GPA), had reached a deal with Carrefour, its French arch-rival.
Casino’s press statement on Tuesday morning didn’t leave much doubt about the reaction of Jean-Charles Henri Naouri, Casino’s CEO, and his colleagues. They thought they had a deal with GPA that would give them control of Brazil’s biggest retailer next year. They may very well have a case. But a look at the advisers behind Tuesday’s deal suggests it may be time for some deep breathing. Continue reading »
Vietnam: investors losing patience
“Vietnam has a lot of potential,” the Vietnamese country head of a large American company told beyondbrics recently. “But it had a lot of potential 10 years ago and it’ll still have a lot of potential in ten year’s time.”
His attitude is typical of a growing number of international investors in Vietnam who have become frustrated by the ongoing financial instability and apparent inability of the government to drive through much-needed reforms in a timely fashion. Continue reading »
Gold and silver fabrics – the latest Indian fashion statement
For generations, wealthy Indians have adorned themselves with gold, be it in jewellery or in apparel embroidered with gold-wire gauze.
Now, as the country’s economic boom fuels demand, technology is offering new ways for affluent Indians to wear the precious metal. Continue reading »
StanChart: gone to the beach
The French phrase for on strike – en greve – literally means that you have gone to the beach. But these days you are not really expected to go.
No-one told Standard Chartered’s 3,000 striking workers in South Korea, who have headed to the east coast, that it could be a fatal error to go to the seaside when you are trying to win public sympathy. Continue reading »
New York headlines
* Wen rebukes UK human rights focus
* Geithner eyes India financial reforms, US access
* Posco steel plant faces fresh hurdle in India
* Cairn revises Vedanta terms in effort to win approval
* Lagarde wins China official’s backing Continue reading »
Poland aims for price pop in JSW IPO
There is always a careful dance between getting as much as you can for an asset and attracting buyer interest – but in the case of Polish government asset sales, the political need to supply punters with a satisfying price pop has made buying into such IPOs a relatively risk free proposition.
That is looking to be the case with the July 6 initial public offering of JSW, Europe’s largest coking coal producer, as analysts are predicting a 10 to 15 per cent price increase once trading starts. Continue reading »
Further reading: Who’d be an expat?
Tuesday’s top picks from the beyondbrics team: Wen’s contrasting moods on his UK trip; the trials of Chinese expats and why foreign workers in Abu Dhabi have cause to be nervous. Elsewhere, why hundreds of baby girls in India are being converted into boys. Continue reading »
Carrefour and Casino: face off in Brazil
We have a battle on our hands in Brazilian retailing. Carrefour, the French hypermarket chain, said on Tuesday it had received an offer to join forces with Grupo Pão de Açúcar (GPA), Brazil’s biggest supermarket chain, to create easily the biggest company in the sector.
Sounds great – except that GPA already has an agreement with Casino, Carrefour’s French arch-rival, that appears to allow Casino to take control of GPA next year. Continue reading »
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