Last year, an American multinational company announced its decision to sell its entire operation in Argentina. This led to the sale of two iconic brands, Ariel and Magistral detergent, to the local group Dreamco. Following this trend of local businessmen taking advantage of multinational companies exiting Argentina, Newsan, the electronics leader in Tierra del Fuego, announced its decision to keep the rest of its operations in the country, including brands like Always, Gillette, Head & Shoulders, Oral-B, Pampers, and Pantene.
The decision by Procter to leave Argentina was made before Javier Milei took office. The company has a plant in San Luis where it produces various products such as diapers, feminine wipes, shampoos, and dental care products. The first buyer for their soap and detergent brands, Dreamco, was established when a Peruvian company left the country.
Newsan, on the other hand, operates under the controversial tax benefits regime in Tierra del Fuego and is involved in the manufacturing, marketing, and distribution of consumer electronics and household items. The company’s main shareholder has close ties to a political figure in Argentina. The market views this operation as a strategic move to diversify their business in anticipation of changes to the Tierra del Fuego regime.
In conclusion, the sale of operations by multinational companies in Argentina has paved the way for local businesses to step in and take over. It represents a shift in the business landscape and highlights the importance of adaptability and strategic decision-making in the face of changing economic environments.