Bunge and Sanbra: Formation of economic groups in Brazil (1923-1994)

Abstract

This paper identifies the motives that took Sociedade Algodoeira do Nordeste Brasileiro, S. A. (Sanbra), Bunge's subsidiary, to consolidate a business group. Their seventy-year history is analysed, from 1923 to 1994, when the company was incorporated in Bunge's restructuring. The article is based on primary resources, all consulted on Bunges's Memorial Center, in São Paulo, specially the balanços anuais (annual balances), the Relatórios de Diretoria e Balanços Anuais (board reports) and the magazine Atualidades Sanbra. The following authors will theoretically handle the business groups's formation in peripheral economies. As a forecast conclusion, it's able to confirm that some factors contribute for Sanbra's Business Groups transformation, specially the reinvestment of their own capital, launching new products, acting in several sectors, relationship with State credit sources, as their occupation in the national territory.