Americanas: Did too much M&A activity affect the governance?
Synopsis: One of the oldest retail chains in Brazil, Americanas S.A., lost nearly 80% of its market value in one single day on 12th Jan 2023 as the company revealed almost US $4 billion of accounting inconsistencies in its balance sheet.
While the major newspapers of the world carried headlines of Adani vs Hindenburg, the Americanas debacle was essentially pushed to the back pages.
Using EMAlpha’s multilingual AI, we compared the governance scores of Americanas based on the local Portuguese news flow as well as on the English news flow to see if the data showed any red flags.