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LatinNews Regional Monitor: Brazil & Southern Cone - 29 May 2019

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In brief: Brazil

* Speaking at the opening of the ‘Energy Week’ in São Paulo (organised by Grupo CanalEnergia), Brazil’s minister for mines & energy, Bento Albuquerque, repeated the government’s intention of presenting a plan for the capitalisation of state-owned electricity company Eletrobras in early June. The Brazilian government is pushing forwards with plans to privatise most of its state-owned companies, but Albuquerque emphasised that Eletrobras will be sold off through a capitalisation plan, rather than a privatisation plan (plans to privatise Eletrobras do not meet with overwhelming support amongst the general population). The exact model of the capitalisation plan is yet to be confirmed, but Albuquerque evoked the possibility of copying the model used in the privatisation of aeroplane manufacturer Embraer. Embraer was privatised in 1994 after its shares were sold on the São Paulo stock exchange, but the Brazilian state maintained a controlling stake in the company (known as the ‘golden share’).