In 2019, an American multinational company announced that it would be selling its entire operation in Argentina. This decision resulted in the sale of two iconic brands, Ariel and Magistral detergent, to the local group Dreamco. However, Newsan, the electronics leader in Tierra del Fuego, chose to keep the rest of its operation in the country.
Following this trend of local businessmen taking advantage of multinational companies leaving Argentina, Newsan decided to continue its operations in Argentina using its own funds for the transaction. The company is known for manufacturing and distributing consumer electronics and household items under the tax benefits regime in Tierra del Fuego.
The decision by Newsan to sell off its Ariel and Magistral brands came after the American company found it difficult to create value and operate in the country due to the macroeconomic environment. On the other hand, Newsan’s move was seen as a way to diversify and anticipate potential changes to the Tierra del Fuego regime. The company has already expanded into the fishing business and became a major exporter in that sector.
These shifts in ownership and operational decisions reflect how multinational companies are adapting to changes in Argentina’s market landscape. Local businesses are employing strategies such as keeping their operations within the country or expanding into new sectors while navigating challenges like political instability or economic uncertainty.
In summary, Newsan’s decision to continue operating in Argentina despite other multinational companies leaving reflects how local businesses can still find success despite challenges faced by international corporations.