In Sao Paulo, Brazilian companies are eyeing potential acquisitions in Argentina, while also expanding their staff and operations in a calculated move to seize opportunities arising from President Javier Milei's bold economic policies aimed at reviving the crisis-battered economy.
Amid Milei's stringent austerity measures that have curbed triple-digit inflation and rebuilt reserves, Brazilian firms in various sectors such as consumer goods, services, oil, and technology are considering launching new ventures or expanding in Argentina after years of economic turmoil that discouraged investment.
Rodrigo Stefanini, CEO of the Latin American operations at Stefanini Group, a Brazilian multinational technology company, noted that Argentina has reemerged as an attractive market. The company witnessed a 15% sales growth in Argentina last year, with plans to explore acquisition opportunities in the country for the first time since establishing a presence in 1996.
Acknowledging the uncertainties of the economic landscape, Stefanini expressed the need to act swiftly, stating, "You don't want to be the first to arrive at the party, but you also don't want to be the last, because the drinks may be finished."
Regional advantages through the Mercosur trade bloc have historically given Brazilian companies an edge in navigating Argentina's economic cycles, despite past challenges affecting some firms.
Federico Servideo, President of the Brazil-Argentina Chamber of Commerce, highlighted Brazilian companies' cautious approach, monitoring economic trends and potential policy changes before committing to substantial investments in Argentina in the upcoming months.
Brazil's Petrobras and CVC Corp are among the companies eyeing expansion opportunities in Argentina, while Cambuci SA and Artecola are considering re-entry into the market based on evolving economic conditions.