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Brazil: Bradesco to acquire HSBC Brazil unit for $5.2 billion

By  |  August 3, 2015

Banco Bradesco agreed to buy HSBC Holdings Plc’s (HSBA.L) Brazilian unit for a surprisingly high 17.6 billion reais, narrowing the gap with larger rivals while boosting its base of affluent customers in Latin America’s largest economy.

The deal between Bradesco and Europe’s largest bank includes the latter’s Brazilian retail banking and insurance units. The agreement, which still requires regulatory approval and was sealed on July 31, could close by June.

The all-cash acquisition will allow Bradesco to close the asset gap with larger rivals Itaú Unibanco Holding and state-controlled banks Banco do Brasil and Caixa Econômica Federal. HSBC Brasil’s focus on high-income customers fits well into Bradesco’s plan to ramp up sales of specialized financial services for the wealthy and larger corporations.

Full content: The New York Times

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