Aabar Investments, with interests ranging from luxury cars to space travel, has taken a US$328 million (Dh1.2 billion) stake in the Brazilian unit of Spain's biggest bank.
It is the latest in a string of overseas deals involving the Abu Dhabi Government-controlled company that is fast becoming the region's most acquisitive international investor after snapping up stakes in ventures that include the luxury car maker Daimler and Virgin Galactic, owned by Sir Richard Branson, the British entrepreneur.
The company said yesterday it had bought American depositary shares issued by the Banco Santander (Brasil), a unit of Spain's Santander.
"We are delighted to have had the opportunity to invest in such a strong and successful entity," said Khadem al Qubaisi, the chairman of Aabar. "We hope to continue to strengthen and develop the existing relationship we have with Banco Santander and look forward to working with them in the future," he said in a statement to the Abu Dhabi Securities Exchange.
Aabar, which is majority-owned by the International Petroleum Investment Company, has been busy targeting international investment opportunities in recent months to develop its asset base. That objective forms part of the Government's strategy to diversify its economy away from oil and broaden its industrial base.
"If there is a pattern, then it is diversity in investments," said Ali Khan, the managing director and head of brokerage at Arqaam Capital. "The move fits into their strategy of diversifying their assets. Banco Santander is generally considered to be a very good bank. They have had limited fallout from the subprime crisis, although they had some impact in the Spanish mortgage market."
Financial services is one of five key investment areas for the company, Mohamed al Husseiny, the chief executive of Aabar, said last month. The other areas are property, cars, infrastructure and aerospace.
He said the company was continuing to look for opportunities in financial services, which may include, but not be limited to, taking stakes in banks.
In April, the company purchased the Swiss-based private-banking unit of America International Group (AIG), now known as Falcon Private Bank.
In its latest deal, Aabar hopes to take advantage of Santander's ambitious plans to open 600 branches in Brazil over the next four years and extend its operations into lending to companies and home buyers. With more than 2,000 branches in the country, the company is Brazil's fourth-biggest non-state bank and holds a market share of about 10 per cent by assets.
Santander raised $8.1bn earlier this month with an initial public offering (IPO) of shares in its Brazilian unit, in what was the largest IPO in the world so far this year. Investors in Brazil and the US bought the shares in the form of American depositary shares.
The South American country's economy has rebounded following a short-lived recession, and is proving an increasingly attractive investment environment. Hampered for years by a boom-and-bust economy, policy makers have helped turn the country around through reforms designed to control inflation and government debt.
Aabar has been actively acquiring stakes in foreign companies since the start of the year, taking stakes in a variety of ventures to add to its investment portfolio.
Mr al Husseiny said last month that Aabar was considering buying a majority stake in a project to build an 80-storey hotel and residential tower in New York.
In August, the company struck a deal with the Algerian government and five German companies, including Daimler, to manufacture up to 10,000 cars and lorries a year in the North African country.
In July, Aabar bought 40 per cent of Daimler's interest in Tesla Motors, a maker of electric sports cars, the same month it paid $280m for a 32 per cent stake in Virgin Galactic.
Also in July, the company formed a partnership with Berndorf in Austria to launch an investment vehicle to target technology companies and European property.
Closer to home, Aabar has signalled its intention to develop property holdings and said earlier this year it would buy 14 plots of land in Abu Dhabi - including some on Reem Island, in Aldar's Al Raha development, at Rawdhat Abu Dhabi and Saraya - comprising a total investment of about Dh2.7bn.
@Email:tarnold@thenational.ae
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Results
6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m
Winner: Ziyadd, Richard Mullen (jockey), Jean de Roualle (trainer).
7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m
Winner: Barney Roy, William Buick, Charlie Appleby.
7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m
Winner: Secret Advisor, Tadhg O’Shea, Charlie Appleby.
8.15pm: Handicap (TB) $175,000 (D) 1,600m
Winner: Plata O Plomo, Carlos Lopez, Susanne Berneklint.
8.50pm: Handicap (TB) $135,000 (T) 1,600m
Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.
9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m
Winner: Gladiator King, Mickael Barzalona, Satish Seemar.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
LAST-16 FIXTURES
Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi
Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi
Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi
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Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis