Latin America: The great rotation in M&A

Deputy finance minister Paulo Rogerio Caffarelli has suggested BNDES may face funding cuts

When Laurent Noual, a corporate development officer at French tyre manufacturer Michelin, presented an acquisition opportunity in Brazil to the company last year, he did not try to disguise Brazil’s problems.

Despite a falling stock market and stagnating economy, Noual was able to convince his management and board to go ahead with an investment of R$1.6 billion ($560 million). He says the purchase of Sascar, a Brazilian trucking fleet-management company, was a means to expand Michelin’s client networks in a country that remains one of its top four markets globally.