Merger in Brazil

Business law can be a complex topic for executives who are investing in property and other transactions in foreign countries. For instance, mergers and acquisitions are often accomplished across country borders.

While Brazil contract law is a challenging topic on its own, developing mergers with Brazilian businesses can be even more confounding. The Civil Code plays a role in dictating contracts and business doings for smaller, limited companies, according to the publication Corporate Compliance Insights. The Corporation Law, on the other hand, is used in terms of the reorganization of a business’s structure, shareholders’ agreements and tender offers.

Both private and public companies must follow the Corporation Law when developing merger or acquisition agreements. A Brazilian attorney can help businesses maintain regulatory compliance and point companies in the right direction regarding their merger activity in this country.

The Brazilian Securities and Exchange Commission as well as the Central Bank of Brazil are both in charge of ensuring businesses remain compliant during their financial dealings during a take-over.

Bloomberg Businessweek reported that Jorge Paulo Lemann is currently the richest man in Brazil, partially because of acquisitions and savvy business dealings. Lemann was able to gain this status after surpassing commodities tycoon Eike Batista, who had been the richest Brazilian until recently. In 2008, Lemann and his partners, Marcel Herrmann Telles and Carlos Alberto Sicupira, completed a $52 billion merger with Anheuser Busch InBev NV.

“The performance of the companies that Lemann controls has been very strong,” Chris Palmer, London-based director of global emerging markets at Henderson Global Investors Ltd, told the news source. “He’s built on the success of his companies in Brazil and partnered with global companies.”

Other business owners looking to ensure their company thrives should consult experienced lawyers from a Brazilian law firm, which helps negotiate and develop beneficial contracts concerning an international merger or acquisition.