Not so long ago, the idea that Latin American companies – traditionally cosseted, family-owned concerns or sluggish, public-sector behemoths – would start to dominate global industries would have sounded fanciful in the extreme. Yet that is what has begun to happen over the past three years in sectors such as cement, mining and telecommunications. This year’s $85bn (£42bn, €55bn) bid by Vale, the Rio de Janeiro-based mining group, for its Anglo-Swiss rival Xstrata has taken the trend to a new level.

Vale is already the world’s biggest producer of iron ore (see picture) and has been diversifying steadily over recent years. If it buys Xstrata – which is not guaranteed as the two sides have been locked in an impasse over marketing rights for the past few weeks – this strategy would make Vale the biggest mining conglomerate in the world.