MercadoLibre (NASDAQ:MELI) is expanding its presence in Brazil with the naming of a soccer stadium in Sao Paulo.
The Pacaembu stadium will now be known as Mercado Livre Arena Pacaembu. The Argentine company, which is headquartered in neighboring Uruguay, said the deal was worth more than 1B reais ($202M) and the contract could last up to 30 years.
“The total investment we’re making in Brazil will reasonably go beyond 1B reais and this is the biggest naming rights contract in the country, and one of our biggest investments of the year in Brazil,” senior vice president Fernando Yunes said, according to Valor Economico. The e-commerce outfit was expected to have invested some 19B reais in Brazil last year, up more than 11% from the previous year, Reuters said.
The contract is valid for five years and renewable for five more with the intention to reach a total of three decades, according to Allegra Pacaembu, a consortium led by construction company Progen, which won the concession to operate the stadium in 2019.
Brazil represents an outsized proportion of revenue for the Amazon (NASDAQ:AMZN) competitor with sales of $2B in the third quarter increasing some 43% from a year earlier. The country also represented more than 50% of total revenue of $3.76B for the period.
But MercadoLibre, launched in 1999, faces mounting competition from the Seattle-based giant, which entered Brazil in earnest in 2017.
And Amazon is catching up: Mercado Livre, as it is known in Brazil, was accessed 286 million times per month, putting it ahead of Amazon with 260 million monthly visits, according to a survey by Semrush.
MELI is up nearly 49% over the past 12 months.