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Saudi Prince Eyeing Avibras? Dispute Over the Purchase of the Strategic Brazilian Company Among Companies and International Investors Raises Concerns in the Federal Government About the Future of the National Defense Sector.
In a statement released on October 25, Avibras announced a significant advancement in its financial recovery process, highlighting the signing of an agreement for the acquisition of control of the company by a Brazilian investor. However, the completion of this acquisition still depends on the fulfillment of certain conditions. While the dispute over Avibras attracts attention in the market, including figures such as the Saudi prince, the company is conducting essential due diligence to validate and finalize the process. The aim is to restore Avibras’ operations and strengthen its position in the national defense sector.
Announcement of the Dispute Over Avibras May End Year-Long Strike
The signing of this agreement represents an important milestone in the company’s restructuring process and aims to put an end to the dispute over Avibras. The effective closing of the acquisition can only occur if all the conditions established in the agreement are met.
The parties are working collaboratively and diligently to conclude the transaction. Following the announcement, which may end the dispute over Avibras, the company’s workers are preparing to end a strike that has lasted more than a year.
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In a meeting of the metalworkers’ union held on this past Tuesday (29), employees defined a list of demands to be presented to the likely new owner of the company in a meeting scheduled for November 8.
To end the strike, workers have drawn up five main demands, including the full payment of wages and fines, the restoration of the health plan, and a guarantee that the company will remain in the region for at least 10 years. Additionally, they require the disclosure of the company’s debts to each worker and job stability for one year.
Saudi Prince Competes for the Purchase of Avibras
Avibras’ financial crisis has resulted in a labor debt of approximately R$ 327 million. Since the beginning of the recovery process, the number of employees has dropped from 1,400 to 924, who are facing wage delays that have already reached 19 months, according to union leaders. Workers say they are also without access to FGTS and the health plan.
According to Veja’s radar column, it is not a Brazilian investor that is closest to purchasing Avibras. Journalist Gustavo Maia asserts that the Avibras dispute is with the Saudi Sovereign Fund, led by Saudi Prince Mohammed bin Salman, which is expected to take 80% of the Brazilian arms company that manufactures rockets, missiles, and launchers and entered judicial recovery in March 2022.
Data from the consultancy Global SWF shows that the Saudi Prince’s fund invested $31.6 billion in 2023, making it one of the most active investment platforms in the world. Despite its precarious financial health, Avibras has valuable assets in the military market, such as the Astros 2020 multiple launch system and the AVMTC-300 Tactical Cruise Missile, which are the most deterrent armaments of the Brazilian Army.
Merger of Avibras with Akaer
It is clear that the purchase of Avibras by a Brazilian investor is much better for national security than its sale to the Saudi prince. This is a strategic company for national security, and we hope that the Brazilian investor, whose name has not yet been disclosed, will be the winner of this dispute over Avibras.
Another solution that may prevent the purchase of Avibras is coming from the Government and the Armed Forces, who are planning a potential merger of Avibras and Akaer Engenharia Espacial, through a group of national investors. The attempts by the Saudi Prince and foreign companies such as DefendTex and Norinco, from Australia and China respectively, have raised concerns in the Brazilian government, leading BNDES to seek a national solution, given that the company produces the most powerful armament of the Brazilian Army.
Fakenews
Vergonha o Brasil perder essa empresa estratégica.