Mubadala Development has reached a US$2 billion investment deal with Brazil’s EBX Group as it seeks to gain from a diversified company with interests in oil and gas, gold and other sectors. In exchange, Mubadala, a strategic investment company owned by the Abu Dhabi Government, will be granted a 5.6% stake in Centennial Asset Brazilian Equity Fund and other offshore holding companies owned by Eike Batista, the founder of EBX Group. As part of the agreement, Mubadala will also obtain access to a pipeline of future business opportunities, including investments in companies that specialise in technology, fertilisers, and cement – among the materials most often used in rapidly developing economies. “This investment creates an attractive and diversified exposure to an emerging economy and paves the way for healthy financial returns and future collaborations in many areas,” said Khaldoon Khalifa Al Mubarak, the chief executive and managing director of Mubadala. “Brazil’s economic fundamentals are strong and the investment prospects in this market for the medium to long-term are attractive.” Since Mubadala was founded in 2002, the company has made most of its investments in developed countries. But it says it has always perceived emerging markets as the future for its growth.
