Cannondale Bikes Show Real Drop Helps Industry: Corporate Brazil
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The drop in the real, the worst-perfoming major currency over the past six months, is reviving interest in Brazil’s industry after a half-decade slump.
Montreal-based Dorel Industries Inc., the maker of Cannondale bicycles, on Aug. 22 said it was acquiring a 70 percent stake in Caloi, the country’s oldest and largest bike manufacturer, for an undisclosed amount. While the deal was in the works before the real’s recent slide, a weaker currency made it more attractive and could help pave the way for Caloi’s factory in Manaus, a duty-free zone in the Amazon, to become a hub for exports, said Dorel Chief Executive Officer Martin Schwartz.