Bovespa-BMF merger already draws actions from foreigners
DCI - 05/09/2008
Besides resulting on the creation of the third largest exchange in the world and the second largest of the Americas in market value, the integration between Bovespa Holding and Bolsa de Mercadorias & Futuros SA (BM&F SA) will attract more foreign companies to operate in the Brazilian capital market. "More companies will start going public in Brazil, [the merger] creates new opportunities for us to position ourselves as a more important player in the international market, especially because we now have everything backed up by the "quality stamp" [investment grade]", affirmed Raymundo Magliano, Chairman of the São Paulo Stock Exchange (Bovespa) to DCI, during the Annual General Meeting that approved the merger of the two exchanges yesterday. The ambition of BM&F Bovespa S.A., which has had all items of its constitution approved by great majority, already starts having results and it may begin such expansion through Latin America, according to Carlos Barbosa Mello, lawyer and partner of Mattos Filho Advogados. The office currently works with three Argentine companies interested in going public in the Country, which have already had filed the documentation required for the launching of the IPOs. "Besides those three Argentine companies that may go public in the national market this year, there are some Colombian companies studying the Brazilian market", says Mello. According to the specialist, those companies may enter Brazil by means of the issuance of the Brazilian Depositary Receipts (BDR), with focus on South America. "Our Country has great potential and the merger of the exchanges may help even more. We may become a future manager and consolidator of the exchanges of South America", he says. The Brazilian market seems a good option because of the interest of foreigners to invest in the Country. In only two business days in May, the balance of the direct negotiation of foreign investors in the São Paulo Stock Exchange reached a positive balance of R$ 1.008 billion (US$ 606.1 million).