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Saudi prince eyeing Avibras? The dispute over the purchase of the strategic Brazilian company between 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 significant progress 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 conclusion of this acquisition still depends on the fulfillment of certain conditions. While the dispute over Avibras attracts attention in the market, including from figures such as the Saudi prince, the company is carrying out essential due diligence to validate and complete the process. The objective is to restore Avibras' operations and strengthen its position in the national defense sector.
Announcement of dispute over Avibras could end year-long strike
The signing of this agreement represents an important milestone in the company's restructuring process and puts an end to the dispute over Avibras. The acquisition can only be effectively closed if all the conditions established in the agreement are met.
The parties are working collaboratively and diligently to complete the transaction. Following the announcement, which could put an end to the dispute over Avibras, workers at the company are preparing to end a strike that has lasted more than a year.
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At a meeting of the metalworkers' union, held last Tuesday (29), employees defined a list of demands to be presented to the company's probable new owner, at a meeting scheduled for November 8.
To end the strike, workers have drawn up five main demands, including full payment of wages and fines, reinstatement of the health insurance plan, and a guarantee that the company will remain in the region for at least 10 years. In addition, they are demanding disclosure of the company's debts to each worker and job security for one year.
Saudi Prince disputes 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 fallen from 1.400 to 924, who have been facing salary arrears for 19 months, according to union members. Workers say they also have no access to FGTS and health insurance.
According to Veja's radar column, it is not a Brazilian investor who is closest to buying Avibras. journalist Gustavo Maia claims that the dispute over Avibras is with the Saudi Arabian Sovereign Fund, owned by Saudi Prince Mohammed bin Salman, which should hold 80% of the Brazilian arms company, which manufactures rockets, missiles and launchers and entered into judicial recovery in March 2022.
Consulting company data Global SWF show that the Saudi Prince's fund invested 31,6 billion dollars in 2023, making it one of the most active investment platforms in the world. Avibras, despite its precarious financial health, has assets valued in the military market, such as the multiple launch system rockets Astros 2020 and the AVMTC-300 Tactical Cruise Missile, which is the most deterrent weapon 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 the 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 released, will be the winner of this dispute for Avibras.
Another solution that could avoid the purchase of Avibras comes from the Government and the Armed Forces, which are planning the possibility of a merger between Avibras and Akaer Space Engineering, through a group of national investors. The attempts to buy the Saudi Prince and foreign companies such as DefendTex and Norinco, from Australia and China, respectively, caused concern in the Brazilian government, leading BNDES to find a national solution, given that the company produces the most powerful weaponry of the Brazilian Army.
It is a shame that Brazil lost this strategic company.
Fakenews