THE WEEK IN REVIEW
- M&A. The Embraer-Boeing deal has finally materialized and they will create a third company encompassing Embraer’s commercial jet unit. Embraer’s stock crashed by 15% when the deal was announced, as markets were expecting the deal to be worth more than USD 4.75bn (USD 3.8bn from Boeing). Read more.
- Corruption 1. General Electric’s CEO for Latin America was arrested, along with 21 other suspects, accused of overpricing contracts with a state-administrated trauma institute and paying bribes to public officials in Rio de Janeiro. Losses to Rio’s state budget are estimated at BRL 600m. The scheme allegedly included 33 companies, including Johnson & Johnson.
- Corruption 2. High-ranking officials at the Ministry of Labor, including the minister, Elton Yomura, himself, have been accused of charging kickbacks in exchange
for granting operating licenses to trade unions. Mr. Yomura resigned after being suspended from office by the Supreme Court, as was replaced by the President’s Chief of Staff.
- Health hazard. Brazilian authorities are worried about a possible return of measles to the country. An outbreak in northern Brazil has infected nearly 500 people – and there are other 1,500 suspected cases. Four suspected cases have been registered in Rio de Janeiro,...