In an article published by Latin Lawyer, partner Eduardo Frade and associate Guilherme Palu argue that the provisional measure opening Brazil’s aviation industry to unrestricted foreign investment could boost the economy and the legal sector, but only if congress makes the change permanent.
“Until last month, foreign companies that weren’t lucky enough to have a founder with Brazilian citizenship could invest no more than 20% in a Brazilian airline. After years of debate, this restriction was lifted on 13 December 2018 when the Brazilian federal government issued a temporary decree allowing foreigners to control 100% of airlines’ voting capital. This temporary decree, which needs to be approved by the national congress to become permanent, creates several investment opportunities for foreign investors and will likely result in more mergers and acquisitions in the sector. This also means opportunities for law firms to provide legal assistance on regulatory matters and structuring new businesses”.
Full article available here.