Brazil, Latin America’s largest economy, is Chile’s fourth largest trading partner, which reflects the close commercial ties that the two countries have forged.
The booming Brazilian economy has also attracted Chilean companies, which have become the second largest regional investors in Brazil after Argentina. Over the last 12 months Chilean investment in that country has totaled almost US$ 2 billion.
This is because three Chilean companies – Cencosud, Sonda and Paz — have announced new investments in Brazil. In the case of Cencosud, one of the region’s largest retail conglomerates, it bought the Brazilian supermarket chain Perini, headquartered in Salvador, for US$ 28 million adding to the GBarbosa stores that it already owns in the country.
For its part, the Chilean real estate developer Paz announced its entry into the Brazilian market with the construction of two buildings in Sao Paulo, an investment that totals US$ 15 million. Meanwhile, the technology firm Sonda has already closed a deal to buy the Brazilian company Telsinc for US$ 38 million.
Thus, Brazil has become yet another investment destination for Chilean companies, which already have significant interests in countries like Argentina, Peru and Colombia. Between 1990 and 2009 Chilean capital investments around the world rose to close to US$ 52 billion, of which 20% is destined to the Brazilian economy and 30% to Argentina.