Chinese company searches builder in the country

China Railway Group, the giant Chinese company from the infrastructure sector, is searching for a Brazilian builder, of medium to large size, to purchase, Estado has determined. The biggest obstacle for closing the deal is the involvement of Brazilian companies in the ‘Car Wash’
Operation, which investigates contracts with Petrobrás.
The Chinese group is interested in acquiring a company with revenues of about “hundreds of millions” that is not the center of investigations of ‘Car Wash’, said a source with knowledge in the subject. An advisory group is already looking for assets in the market to offer the company. The Chinese are also interested in investing in railway and urban mobility projects in Brazil and are currently evaluating their participation in the next concessions round in the country.

The group’s interest in having a national construction company has precisely the objective to facilitate infrastructure projects in Brazil, Estado has determined. It is common for groups that manage infrastructure concessions, such as highways and airports, to be also the builder’s owners. They use their own companies to do the works of concession projects – for example, the OAS builder, which is one of Invepar’s shareholders, made the Guarulhos airport works company that controls Guarulhos’ concessionaire.

China Railway Group is on Forbes magazine’s list of the hundred largest companies in the world, but still has no business in Brazil. In the first half of last year, the group had revenues of about 40 billion USD. Estado failed to contact China Railway Group.

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