Good morning! Petrobras privatization talks are likely to be bluster with the election campaign approaching. Senators from the Covid inquiry trying another strategy to hold Bolsonaro criminally accountable. Brazil’s Green Growth Program is no more than recycled proposals.
Don’t believe the Petrobras privatization hype, part 2
Two years ago, shares of Brazilian state-controlled firms skyrocketed after reports that the government planned on privatizing Petrobras by the end of Jair Bolsonaro’s term. At the time, we warned readers there was little substance to the promise. And the government remained quiet on that front until Monday, when both President Jair Bolsonaro and Economy Minister Paulo Guedes said “privatization is on the administration’s radar.”
- According to CNN, the plan would be to sell part of the government’s 50.5-percent stake yet preserve its “golden share,” giving it the final say on strategic matters.
- After news of privatization plans broke, Petrobras shares went up fast, ending the day up by nearly 7 percent.
Be smart. It is hard to believe that there is any substance in Mr. Guedes’ words. Every time the government is under pressure, it starts discussing major deals that would bring billions of dollars to Brazil.
- After nearly three years without...