Portugal’s Soares da Costa wants to enter Brazilian market and find partner in Angola

20 September 2010

Lisbon, Portugal, 20 Sept – Portuguese construction company Soares da Costa plans to enter the Brazilian market and sell of a stake in its Angolan subsidiary to a local partner, the chairman of the company, Pedro Gonçalves said last week in Lisbon.

On presenting the company’s strategic plan until 2014, Gonçalves said that the focus on Brazil was related to the number of construction projects being launched, not only for the Olympic Games and the World Cup, but also those of oil company Petrobrás.

The chairman of Soares da Costa also said that the company was taking advantage of the fragmented nature of the Brazilian construction market, which created “interesting opportunities.”

The company plans to enter the market with a “relatively small” acquisition “and/or setting up a local construction sector partner,” and the company is currently looking at mid-sized companies with attractive margins, according to the strategic plan.

Estimated investment for the period in this project is between 110 and 130 million euros and in a second phase the company plans to diversify its business in the Brazilian market to waste treatment and transport concessions.

In relation to Angola, Gonçalves said that selling off part of the local subsidiary to an Angolan partner aimed, amongst other motives, to reduce exposure to the Angolan construction market, thus reducing the company’s risk. (macauhub)