Brazil: Bradesco wins approval for $5.2 billion purchase of HSBC unit

Brazil’s antitrust watchdog on Wednesday approved Banco Bradesco SA’s purchase of HSBC Holdings local unit with some conditions, marking the latest departure of a foreign lender from one of the world’s most concentrated banking markets.

Five board members of the watchdog known as Cade voted to pass the deal as long as Bradesco BBDC4.SA, the country’s No. 3 listed commercial lender, agrees to refrain from making any rival acquisitions for at least 30 months. The remaining two board members did not cast ballots.

After sitting on the sidelines for years while local rivals bulked up through takeovers, Bradesco made a grab for HSBC Bank Brasil Banco Múltiplo SA last August. The $5.2 billion purchase allowed Bradesco to increase assets by 16 percent and add 5 million clients.

The transaction will help Bradesco cut the gap with state-controlled Banco do Brasil SA and Caixa Econômica Federal and private-sector rival Itaú Unibanco Holding SA – Brazil’s top three banks by assets. Consumer groups have warned, though, that the deal could hurt competition where the top 10 banks control almost 90 percent of the industry’s assets.

Full Content: Reuters

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