(Yicai Global) April 7 -- Chinese companies are showing interest in acquiring large engineering groups in Brazil and hope to participate in the Brazilian government's tender for the construction and operation of commercial railroads, said Charles Tang, president of the Commerce and Industry Chamber of Brazil and China (CCIBC).
Chinese companies looking to the Brazilian market hope to participate in the construction and financing of building projects, he added, as Reuters reported. "They asked me to help them find the right goal, such as those builders which were not involved in the 'Operation Car Wash' investigation," he said.
Almost all of Brazil's large engineering groups were involved in a corruption investigation called 'Operation Car Wash.'
'Operation Car Wash,' which began in 2014, is the largest corruption investigation ever conducted in Brazil, with Brazil's largest state-owned company Petróleo Brasileiro S.A. (Petrobras) as the subject. The company was suspected of having illegally traded with several large Brazilian construction contractors who offered kickbacks to Petrobras' executives to award contracts. The contracts were often higher than the actual prices, with the excess paid to Petrobras' executives. As the investigation expanded, Brazilian politicians also became ensnared, with nearly a hundred politicians suspected of corruption in Petrobras.
Charles said Chinese companies are interested in such projects as the Ferrovia da Integracao and Ferrograo Railroad. These projects together require about USD4.18 billion (BRL13 billion) in investment. China Railway Group Ltd. [SHA: 601390] and China Communications Construction Co. [SHA: 60800] may also be interested in these undertakings.
Tang further said Chinese firms are also showing an interest in Brazilian agriculture and oil exploration activities.