Videocon Industries and Bharat Petroresources Ltd, a wholly owned subsidiary of Bharat Petroleum Corporation Ltd, has acquired Brazil’s EnCana Brasil Petroleo Limitada for $283 million. Videocon and Bharat Petroresources will pay $165 million for the acquisition and another $118 million as reimbursement for EnCana’s expenses since January 1, 2007.
The world now realizes how profitable these Brazilian oil companies can be...
do you think Brazil is likely to revert back to protectionism once it realises that too many companies are getting a share of their oil-derived wealth?
ReplyDeleteI think it is highly unlikely that Brazil will revert to such a system. I think the benefits of liberalising the economy outweigh the advantages of completely nationalising the industry for the benefit of the people. Essentially, FDI is a key requirement to make the industry grow and thus reap the fruits it has to offer.
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