Debdeb,
I'm not sure divesting the Brazilian business is that easy...besides the fact that the market for parties who might seek to buy this sort of highly-specialised distributorship is probably not that liquid or deep, even if this business was profitable.
Being loss-making takes an already tough divestment brief and makes it almost impossible.
And there would be all sorts of licensing and intellectual property issues.
I think that what they are trying to do is to address the cost base of that business in order to compete with local manufacturers.
I agree with this strategy being the best one in terms of shareholder value creation (or, at least, ceasing shareholder value destruction).
Remember that Brazil represents 10% of total group revenues, so even if they get that half right, the upside is significant.
Cam
Debdeb,I'm not sure divesting the Brazilian business is that...
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