by Jef Cozza
Crossing the Line
BNDES has made a habit of supporting consolidation to create national champions. But was its attempt to wade into the fight between Carrefour and Casino a miscalculation?
Brazils development bank, BNDES, has long considered
itself in the business of helping to create national champions
in order to compete in the global marketplace. But the
banks latest attempt to consolidate a market the
proposed merger between Frances Carrefour and Companhia
Brasileira de Distribuição (CBD), better known as
Grupo Pão de Açúcar (GPA) raised a
public outcry and forced the government entity to beat a hasty
Criticism of BNDESs role in consolidating Brazilian
industries is not new, but its involvement in so many recent
acquisitions may be pushing public opinion against the national
champion model. With market participants wondering why the
government entity would need to intervene in what was
essentially a battle between two French retailers, BNDES may
now face heightened scrutiny by a dubious public on its...
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