Brazil: Petrobras and Vale do Rio Doce are biggest companies in Latin America

11 January 2008

Sao Paulo, Brazil, 11 Jan – Brazilian oil company Petrobras and mining company Companhia do Vale do Rio Doce (CVRD) ended 2007 as the two largest companies in Latin America by market capitalization, according o a study carried out by consulting company Economática.

According to the study, the oil company maintained its lead and CVRD overtook Mexican telephony company America Movil to take on second place.

The study also noted that the 25 largest listed companies in Latin America had a joint market capitalization of US$1.072 trillion – 51.8 percent more than in 2006 (US$706.44 billion).

The number of Brazilian companies in the top 25 rose: From 12 to 13. The new company in the list is Bovespa Holding, which floated some of its shares in October. Mexico is the country with the second-highest number of companies in the list, with nine companies. Argentina has two companies in the list and Chile has one.

Petrobras guaranteed its top spot by increasing its market cap by 125.3 percent, reaching a total market value of US$242.72 billion. CVRD, in its turn, rose in value by 125.4 percent, to US$154.5 billion.

Along with Bovespa Holdings, three more companies – Mexican mining company GrupoMexico, Brazilian steel maker CSN (Companhia Siderúrgica Nacional) and Banco Santander Brasil – entered the list this year. Chilean companies Endesa and Enersis and Brazilian telecoms companies Telesp (Telefonica) and TIM Participações did not make the list after being included last year. (macauhub)