This weekend, while most of the public will be keeping an eye on the tracks at the São Paulo Formula 1 GP, a select group of senior executives, businesspeople and specialists in company acquisitions will be in the VIP areas of the event involved in transactions that will become news several days later. Behind the scenes of F1, adrenaline rises at the speed of business.
O InvestNews learned from sources, for example, that representatives of Mubadala, the main investment vehicle of the sovereign wealth fund of the United Arab Emirates – and which is the owner of IMM, organizer of GP Brasil –, will take advantage of the event to meet with offices specializing in mergers and acquisitions, as well as businesspeople and executives from Brazilian companies. The group recently announced the goal of investing US$1 billion per year in the country.
The president of Mubadala Capital in Brazil, Oscar Fahlgren, will be present at the event. And there is speculation that the fund may try to carry out, among other negotiations, the sale of the Mataripe refinery to Petrobras. The plant belongs to Acelen, controlled by the Arab group.
READ MORE: From Starbucks to the Rio Subway: Mubadala’s tentacles in the Brazilian economy
Mubadala began investing in Brazil in 2012. Since then, it has expanded its presence in the country through the acquisition of companies in difficulty. And so he accumulated a portfolio totaling US$6.1 billion (R$32 billion).
The list of investments ranges from the Rio de Janeiro subway to the events company that organizes Formula 1 in Brazil, including sugar and alcohol plants, the Mataripe refinery, a chain of gyms and a mining company. Recently, it acquired Starbucks Brasil through its subsidiary Zamp.
A senior executive from a financial company, who asked not to be identified, says he organized a caravan with hundreds of customers and partners to experience this atmosphere of connections at an F1 race in the United States. “I’ve been to several GPs around the world and casually crossed paths with CEOs of technology giants. I only got access to them because of F1.”
The executive highlights the strength of the combination of business and sport. “It is a powerful experience, which combines the passion for sport with the possibility of knowing the ‘GDP’ of the region of each event.”
An example of how F1 can function as a privileged business platform occurred at the end of July 2023. A seminar that was attended by the largest delegation of Saudi Arabian officials to visit Brazil originated behind the scenes of a grand prix.
On the occasion, a group of around 100 businesspeople and members of the Saudi government were on national soil. Headed by Khalid Al-Falih, the country’s Minister of Investment and former CEO of the world’s largest oil company, Saudi Aramco, the group came to Brazil at the invitation of XP. The connection came about when Al-Falih met executives from the digital investment platform during one of the races in the 2023 season.
There was a previous connection: XP and Saudi Aram were sponsors of the same team, the English Aston Martin. “We are very interested in investing and attracting companies to the Kingdom”, highlighted Al-Falih at the time. The seminar attracted Brazilian companies such as Azul, Ânima, Oncoclínicas, Luft Logística and CCR interested in opening doors in the Arab market.
READ MORE: Sale of Mataripe to Petrobras drags on and tests the patience of Acelen investors
Brand speed
The combination of pleasure and business became valuable revenue for GP São Paulo. The CEO of the Brazilian stage of F1, Alan Adler, estimates that each of the three days of the event receives at least 10 thousand people linked to brands and companies looking to do business at the event. In other words, in addition to enjoying themselves, the public has also taken the “C-level” badge backstage.
Brands that are part of this world of speed see GP São Paulo as an opportunity not only to do new business, but also to renew ties. Mercedes-Benz, a long-time sponsor of F1 teams, has its own area within the event and usually offers a VIP visit to owners of transport companies, dealership networks and exclusive customers of the group.
“Our customers and partners can buy any type of ticket, but being invited by the brand is another experience”, says Alessandra Souza, head of marketing and corporate communications for the German group in Brazil.
READ MORE: Rolex leaves, TAG Heuer returns: LVMH closes US$1 billion sponsorship with Formula 1
The delegation organized by Mercedes included members of the AMG Private Lounge club. “These are super exclusive customers who have cars from AMG, the brand’s high-performance division. We invited customers from Argentina, Peru and other Latin American countries to a relationship and experience event.” Mercedes AMGs are customized versions for super sports performance. They cost from R$1.6 million in Brazil.
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Another sponsor, Porto, considers the event to be a valuable asset. Luiz Arruda, the group’s commercial and marketing vice-president, sees Formula 1 as the “pinnacle of the culture of automobile passion”. The executive highlights that there is a clear emotional appeal among partners, customers and employees invited to participate in a race. “The event itself works as a lever for experiences”, he says.
With the help of the speed party, the brand seeks, for example, to increase engagement in Porto’s main product distribution channel, insurance brokers. “The emotional connection plus the relationship generates very strong motivation.” The investment pays off. The strategy helps Porto maintain the largest share in the auto insurance segment, with 28% of sales.
A Brazilian company that has used F1 as a springboard for foreign markets is Oak Berry. The manufacturer of açaí-based products has sponsored the American Haas F1 team since 2022. The company already sells its smooties in 40 countries and has 70% of its revenue coming from the international market. “It is a personal achievement, aligned with the international expansion strategy and the global positioning of the brand”, stated founder and CEO Georgios Frangulis, at an event.
In the 2024 edition, GP São Paulo has more than 300 brands including sponsors, partners and supporters who have secured a place in the sun in the global showcase provided by the GP. The interests of those who join or want to be linked to the highest category of motorsport are diverse, but, in common, there is the desire for worldwide exposure in an event with an audience accumulated last season of more than 1.5 billion fans in dozens of countries. Behind the scenes, the big prize is business.
