Business

Mercado Libre reportedly in talks with Brazilian government over Correios privatization: Valor

Valor Econômico reported that the VP of Mercado Envios said that the e-commerce giant has been closely watching government's talks about Correios' privatization

Photo: Correios
  • Correios and three more state-owned companies are expected to be privatized by the end of next year;
  • Brazilian Correios is projecting that the volume of deliveries should grow more than 20% on this year’s Black Friday, compared to the 2019 edition.

Mercado Libre‘s said on Thursday that the company remains attentive to the discussion on a possible privatization auction for the Brazilian Postal Service Correios and has conversations with the Brazilian government on the subject, reported Valor Econômico.

“We continue to talk and support the government in talking about the Correios process. We are at the table talking to the interested parties. As the largest customer of Correios, I believe it is important to have a good dialogue with the buyer of the post office”, said Leandro Bassoi, VP of Mercado Envios, the logistics arm of Mercado Libre.

As LABS has shown, Brazil’s retailer Magazine Luiza, Amazon, DHL and FedEx are eyeing a potential acquisition of Correios. In September, Brazilian Communications Minister Fábio Faria said that there were five companies interested in acquiring the state-owned firm.

READ ALSO: Correios says services have not been affected by postal workers national strike

Correios and three more state-owned companies are expected to be privatized by the end of next year, according to the Brazilian Economy Minister Paulo Guedes.

Guedes defended that the current government was elected to privatize state-owned companies, but said that there are agreements in Congress preventing actions in this direction, imposing the need for a new political orchestration to move the agenda forward.

The government has not yet sent Congress the proposal to privatize Correios.

READ ALSO: The privatization model for Correios, the Brazilian Postal Service, will be decided on 2020

According to Valor Econômico, Brazilian Correios is projecting that the volume of deliveries should grow more than 20% on this year’s Black Friday, compared to the 2019 edition.

READ ALSO: MercadoLibre launches MELI Air with 4 aircraft in Brazil

However, Mercado Livre has been trying to migrate the delivery of its products to its own logistics structures. “We have greatly reduced the dependence on Correios. For some years this dependency, which was around 90%, has been dropping every six months, but we are still the biggest client of the state-owned company in the country ”, said Basoi to the media outlet.

READ ALSO: Mercado Libre opens 5 logistics centers and doubles its capacity in Brazil

Mercado Libre already works with more than 70 logistics partners in Brazil.