Arab fund makes offer for Burger King Brazil, 5G in São Paulo and what matters in the market

ANDsta is the edition of newsletterr FolhaMercado this Tuesday (2). want to receive it from monday to Friday at 7 am In your email? Sign up below:

Arab fund wants to buy BK

Zamp (formerly BK Brasil), the group responsible for the operations of Burger King and Popeyes in the country, announced this Monday (1st) that it had received a proposal from the Arab fund Mubadala Capital, which wants to take control of the company.

the purchase of 45.15% of shares would be made via OPA (voluntary public offering to acquire control of the company). Zamp’s board of directors said it would release an opinion on the offer within 15 days.

The proposal: MC Brazil F&B Participações SA, controlled by the Arab fund, offered BRL 7.55 per share, in a BRL 938.6 millions.

• As it already owns 4.95% of the company’s capital, the fund would take control of Zamp if the purchase of 45.15% of the shares was successful.

• The offer represents a premium of 21.6% over the closing price of the shares last Friday (29). After the 18% appreciation on Monday, the shares closed the trading session in BRL 7.39.

It is not the first time: Burger King was recently involved in another equity offering. In July last year, the chain announced its intention to join the Domino’s chain in Brazil.

• The operation would be carried out via a share exchange and at the time the “hamburger king” was valued at R$ 11.12 per share – a value higher than the Mubadala offer.

The Mubadala Capitalthe asset management arm of the UAE sovereign wealth fund, manages $284 billion (R$ 1.46 trillion) around the world.

5G in SP

After a task force last week, operators managed to convince Anatel to release the 5G signal in the capital of São Paulo starting this Thursday (4).

What has changed: the city was not listed among the next cities to receive the endorsement, but the telecoms concentrated their efforts to “clean up” the 3.5 GHz band, the 5G frequency, with the installation of filters on satellite and cellular antennas.

The procedure is necessary to avoid interference.

The details: 890 antennas were installed, twice the minimum required by Anatel. The coverage is concentrated in the expanded center, between the Tietê and Pinheiros marginals, and also covers a part of the west zone and the beginning of the south zone.

• The area with the highest concentration of antennas is also where there are more business buildings, job centers and families with greater purchasing power.

Obstacles slow down 5G in Brazil: a Sheet showed last week how the lack of chips and devices updated for “pure” 5G reduce the potential for the arrival of the novelty to Brazilians.

• See here which cell phones are compatible, if you need to change SIM cards and other questions about fifth generation technology.

Next on the list: Goiânia, Salvador, Curitiba and Rio de Janeiro should follow. The premiere was in Brasília, and last Friday the service was expanded to Belo Horizonte, Porto Alegre and João Pessoa.

Analysis | luca belli: what is 5G and why we need to be more objective about its ‘arrival’.

Amazon in the favelas

Amazon is the newest national ecommerce giant to expand its presence in Brazil’s favelas.

The debut of the new model was made in Paraisópolis, the second largest favela in the city of São Paulo, a place that is the scene of similar initiatives.

How it works: Amazon will deliver, including on Sundays and holidays, in partnership with Favela Llog.

• The startup is a joint venture between Holding de Favelas and Luft Logistics and is present in 100 favelas and 10 neighborhoods in Rio de Janeiro, where it already delivers Natura and P&G.

• Amazon orders will arrive at homes in Paraisópolis by couriers who live there.

Why does it matter? Initiatives like this can contribute to reducing an inequality that has become wide open with the digitalization caused by the pandemic: the “prejudice of CEP”.

• It is characterized by the obstacles faced by those who live on the periphery and have difficulty receiving orders at home.

Other projects: Paraisópolis is also home to a project made in partnership between Google, Americanas and the delivery startup Favelas Brasil Xpress.

• Big tech used its Plus Code, a universal code that summarizes coordinates with great precision, to register digital addresses of more than 100,000 favela residents.

• Americanas has integrated the technology into its ecommerce platform and forwards deliveries via Favelas Brasil Xpress.

deflation of pork

In a time of lean cows in the budget of Brazilians, pork prices can serve as a relief from the impact of inflation on consumers’ pockets.

In numbers: in the 12-month period up to June, product prices fell by 5.21%, according to the IBGE. It is the lowest among the 18 cuts that make up the variation of meats in the IPCA.

What explains:

• China: the country had been importing more Brazilian pork while local producers had problems with African swine fever. Now, the herds seem to be normalizing and the vessels heading to Asia have decreased.

• Production increase: this Chinese demand in recent years has put pressure on the price of pork and encouraged more people to get into the game. Today, the slaughter of swine hits a record, but there is no one who buys it.

Cheap alternative: Brazilians are not as big a fan of pork as the Chinese are. Here, it still lags behind chicken and beef proteins.

• The scenario may change at least in part with the price of other meats, whose prices reach double-digit appreciation in 12 months.