Brazil’s Bradesco Buys Mexican Bank and Has Plans for Mexico

A Bradesco bank branch in BrazilBradesco, Brazil’s second largest private bank, announced Friday that it plans to enter the Mexican retail banking market through the acquisition of Ibi Mexico.

The purchase, for an undisclosed sum, is outlined in a memorandum of understanding Bradesco signed with Ibi’s corporate parent, Cofra Holding AG, a holding company that also owns the C&A Mexico retail chain.

Bradesco, Brazil’s No. 2 non-state bank – Itaú-Unibanco is number 1 – said it expects the transaction to be completed by March 30, subject to regulatory approval in both countries.

Ibi Mexico’s loan portfolio amounts to the equivalent of 100 million US dollars and it has issued more than 1 million credit cards, Bradesco said. The Mexican institution’s shareholder equity is 566 million pesos (US$ 43.8 million).

The deal includes a 20-year partnership “to jointly and exclusively sell financial products and services through the C&A Mexico chain. Bradesco.

Marcelo Noronha, Bradesco Cards’ director says that the bank sees the deal as an opportunity to sell insurance and enter the lending market in Mexico.

“Mexico and Brazil are the two main economies in Latin America. Obviously there is an enormous potential in that market on demand of financial products,” he told reporters.

Since early 2009, when he became president of Bradesco, Luiz Carlos Trabuco Cappi, has emphasized that the focus of the institution is to expand its presence in Brazil. In November, Bradesco announced it was present in all 5,564 municipalities in the country.

MP/Bzz

Tags:

You May Also Like

Brazilian Scientists Discovery Might Help Find Cure for Deadly Chagas Disease

Researchers in Brazil have located the ‘genetic factory’ the parasite that causes deadly Chagas ...

In Brazil, Industrial Output, Car Sales and Installment Payment on Time Are All Down

In São Paulo, Brazil, the number of people who have fallen behind in making ...

Lula’s Popularity Falls 6% in Brazil

The 75th survey of Brazil’s National Confederation of Transport (CNT) and the Sensus Institute ...

Brazil to Start Producing Second-Generation Ethanol in September

Brazilian president's Luiz Inácio Lula da Silva's Chief of Staff Dilma Roussef stated that ...

Hedgefund.net's logo

Brazil and Latin America Get New Hedge Fund Benchmark

HedgeFund.net (HFN) has announced the launch of a new hedge fund benchmark for funds ...

Lower Interest Rates Won’t Be Enough for Brazil. But It’s a Start.

The Brazilian president needs to improve the current economic policy.  The people deserve a ...

Former Political Prisoners in Brazil Visit Place Where They Were Tortured

Former political prisoners, accompanied by experts and members of the National Truth Commission, paid ...

Brazil: Lula, Kirchner and Chí¡vez in a Rush to Integrate

Upon his arrival at the South America – Arab Countries Summit, Brazil’s special presidential ...

Revisiting Two Minstrels

Antônio Carlos Jobim and Vinicius de Moraes: for two generations, their songs have been ...

Wanna Buy an iPod? By All Means Keep Away from Brazil

Willing to buy an iPod? Try Hong Kong and if in Europe, Switzerland, and ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`