A PYMNTS Company

Brazil: Antitrust body recommends restrictions on HSBC-Bradesco deal

By  |  April 4, 2016

A preliminary report by Brazil’s antitrust regulator recommended imposing restrictions on Bradesco SA’s purchase of the Brazilian unit of HSBC Holdings PLC, according to the official gazette on Monday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The board of Brazil’s antitrust regulator Cade said it should grant the deal final approval provided the banks agree on measures to minimize market concentration. The recommendation is not binding and is subject to approval by a separate Cade court.

    According to Cade, despite HSBC’s small market share in Brazil, any merger operation should be viewed with caution because of “clear evidences” of low competitiveness in Brazil’s banking industry, in which lenders have one of the world’s highest profit margins.

    The central bank approved the $5.2 billion acquisition in January. Bradesco first announced the deal in August.

    Full content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.