China's Fosun to 'acquire' Brazil investment firm

China's Fosun today signed an agreement to acquire Brazil-based investment management firm Rio Bravo, according to a statement, just a day after the Chinese conglomerate announced another massive overseas deal.

Fosun, which has interests ranging from property to mining, said it will buy the controlling share of privately-owned Rio Bravo Investimentos, but did not give a value for the deal. Fosun did not immediately respond to request for comment.

The Chinese government is encouraging companies to invest abroad to gain access to foreign markets and technology, as economic growth stalls at home.

Fosun chairman Guo Guangchang said the latest deal was an "important milestone for the laying out of Fosun's globalisation strategy of being present in the important emerging economies." Fosun intends to use the acquisition as a gateway to Brazil and the Latin American region in business areas such as property and investment, the statement said.

The Chinese conglomerate announced yesterday that its pharmaceutical unit would buy just over an 86 per cent stake in India's Gland Pharma for up to USD 1.26 billion.

And earlier this month, it completed a takeover of the English Championship football club Wolves.

Fosun chairman Guo has been described as China's Warren Buffet. Hong Kong-listed Fosun also owns Club Med and has a stake in Cirque du Soleil.

Guo mysteriously disappeared for several days in December before re-emerging, and his company said he was "assisting" in investigations by authorities. The incident initially raised alarm among investors who feared he had run afoul of the law.

Chinese companies have been on an overseas acquisition binge this year.

State-owned China National Chemical Corp. (ChemChina) in February offered USD 43 billion for Swiss pesticide and seed giant Syngenta, which will be the biggest-ever overseas acquisition by a Chinese firm if completed.