Sugar

Businesses considering investing in Brazilian property and developing mergers or transactions with other companies in the country will need to consult business attorneys from law firms in Brazil. The nation’s resources have also provided necessary produce for companies looking to open factories and other sites in Brazil.

For instance, sugar is a much-needed substance for various food products and populations around the world. However, Bloomberg Businessweek reported that the amount of sugar being sent to Malaysia and the Black Sea area from Brazil fell by more than 7 percent over the last week.

The total amount of sugar dropped by as much as 0.1 million metric tons when compared to the previous week. Refined or white sugar was found to be more popular, as it grew by 8 percent in one month and more companies have been refining the sweet produce since then.

“The major cause for the lower level of sugar prices through this harvest year is the relatively abundant production obtained both in the center-south Brazil as in other world producers,” Heloisa Lee Burnquist, an analyst at research group Cepea, wrote in a report.

Overall, sugar prices in Brazil fell by 21 percent in the second half of last year when compared to the same time period in 2011. These numbers were the lowest seen in the last four years, according to Bloomberg. Nonetheless, another study showed that sugar production far exceeds global consumption, with an excess of 7.8 million tons.

U.S.-based businesses attempting to invest in the resources of Brazil will need to follow all laws and regulations of the land to ensure they succeed. A Brazilian law firm can help such companies reach their goals while following business law procedures.

Cell Towers in Brazil

Low-interest rates in the United States have allowed businesses – particularly a number of cellular tower companies – to expand their reach domestically and abroad. SBA Communications, headquartered in Florida, has now thrown its hat into the ring, acquiring 800 towers from Telefonica Brazil S.A., a leading local wireless carrier, for $178 million.

For SBA, the acquisition represents its first expansion of operations into Brazil. For Brazilians, the purchase could help boost the country’s telecommunications infrastructure leading up to the World Cup and Olympics – two world-wide spectacles that Brazil will host in the next four years. In light of Telefonica’s ongoing financial struggles, this acquisition should be of benefit to all who rely on those towers to communicate.

“This acquisition provides us with a national footprint of high quality towers, including leasing arrangements with all of the major broadband wireless providers, and establishes us as a substantial independent tower owner in an attractive and high growth market,” said SBA president Jeffrey Stoops.

The intricacies of mergers and acquisitions involving Brazil-based companies

As SBA executives no doubt discovered, the acquisition of a business operating in Brazil involves a number of legal concerns. They likely sought counsel from a Brazilian law firm to ensure that they navigated this potential legal minefield properly.

Brazilian lawyers not only understand the local market, they will help you to understand and mitigate the risks of business acquisitions, mergers or investments, so that you make a decision that is best for your business. A Brazilian law firm is your ally. Without one, you could agree to a deal that is not best-suited to your needs.

Farmers dispute on Land between Logging Companies

Businesses attempting to make transactions in Brazil or expand into this country will need to follow all regulations regarding mergers and acquisitions along with environmental laws. With the Amazon Rainforest playing a significant role in providing needed natural resources for populations at large, companies would be wise to take advantage of transactions with farmers and food producers based in Brazil.

By contacting a law office in Brazil, businesses will be able to follow all necessary legal procedures regarding the environmental protection of this country. BBC News reported that the Brazilian government provided thousands of families with programs and funds to settle the lands along the Transamazon highway.

However, these farmers and families experienced serious problems with big landowners and logging firms that lay claim to the territory they reside on. This form of dispute over land ownership exists today despite the fact that the government issued ordinances requiring the territory to belong to the farming families. The farmers are currently considering a new sustainable way of living off of the land, but the loggers find this problematic.

“We haven’t been intimidated,” Derisvaldo Moreira, a farmer residing near the Amazon, told the news source. “What really bothers us is the number of trees they’re felling. When they began, it was one tree here, another 200m away. But now they’re taking out all kinds of other less valuable timber – macaranduba, angelim vermelho, amarelao and so on. And when they go into the forest, they also damage a lot of the trees we need.”

Businesses conducting transactions in Brazil would benefit from complying with federal laws and avoiding disputes with local farmers. As such, consulting a Brazilian law firm may be useful for a company attempting to abide by environmental protections.

Business Expansion in Brazil

Businesses that are expanding into Brazil will be receiving encouragement from the country’s government officials as long as they follow all laws and regulations within the Brazil legal system. Brazilian law firms can help foreign businesses develop strategies for expanding into the country and conducting mergers or acquisitions.

With the millions of people to choose from around the world, Forbes elected Brazilian president Dilma Rousseff as the eighteenth most powerful and influential person on the globe. Rousseff has brought forth an entrepreneurial spirit to the country, which has stimulated the growth of start-up companies and brought more engagement from Brazilian youth.

Channel News Asia also reported that the President has urged companies to expand throughout Brazil in order to build a stronger economy. The country has been reducing energy costs to help spur business competitiveness and decrease poverty rates.

“Our recipe for a stronger Brazil is to invest in overcoming poverty, guaranteeing home ownership, expanding employment, increasing education opportunities and improving our infrastructure and the competitiveness of our companies,” Rousseff told the nation in a public, widespread broadcast. “I am sure that 2013 will be an even better year for all Brazilians.”

In 2013, the electricity costs will be cut by nearly 17 percent in order to satisfy the companies that have had problems with the excessive energy-related spending. Huge investments are also being made by the federal government in building roads, highways, railways, ports and airport expansions.

Foreign businesses that are planning to expand into Brazil – whether through a merger or acquisition – are advised to work with Brazilian lawyers who have a strong background in negotiating international contracts along with major settlement deals in case of a potential dispute.

Stocks in Brazil

Foreign businesses operating in Brazil will need to develop strong contracts and negotiation tactics when conducting transactions with international companies. By working with a Brazilian law firm, businesses will be able to gain the necessary aid in contract law and other legal resolutions.

With business law differing in Brazil from that of the United States, a Brazilian attorney may help explain the discrepancies between the two legal systems when it comes to contract law.

The Wall Street Journal reported that companies conducting business dealings in Brazil are performing well, as Brazilian stocks opened slightly higher today after the Christmas holiday. However, the last trading sessions are expected to be shortened, as many investors have taken time off for the holiday season.

However, the utilities’ stocks in Brazil had tumultuous showings, with shares from power company Eletropaulo Metropolitana Eletricidade de Sao Paulo experiencing a rise in 3.5 percent while electric power utility Centrais Energeticas de Minas Gerais SA illustrating a decline in shares by 2.5 percent.

“The Ibovespa index is not expected to post impressive gains in the coming sessions as it has already gone up 6.3 percent in the month of December,” the news source stated. “Year-to-date, Brazil’s Ibovespa is up 7.6 percent.”

Other financial goings-on in Brazil point to the strengthened currency. Reuters reported that the Brazilian central bank has sold 69 percent of its currency swaps offered in an auction, which has brought more stability to the country’s currency.

Businesses conducting transactions in Brazil and investors hoping to gain a strong shareholding within the country would benefit from contacting a Brazilian attorney who can provide legal services defending the interests of foreign clients.