Bank of Brazil Buys Argentinean Bank, Next Might Be an American One

Bank of BrazilBanco do Brasil, Latin America’s largest bank, a Brazilian state-controlled financial institution, will pay US$ 480 million for a 51% stake in Banco Patagonia, Argentina’s fourth largest private bank. The deal is pending regulatory approval, both banks said in a release.

Banco do Brasil will pay US$ 1.31 per share – for the 367 million shares sold by Banco Patagonia’s (BPTGF) controllers, the Stuart Milne brothers. The payment will be made in several installments and a public tender offer will be made to minority share holders at the same price.

The Stuart Milne brothers hold 61.6% of Banco Patagonia’s outstanding shares and votes and after the transaction close the brothers and Banco do Brasil will form a shareholders’ agreement to control 61.6% of the bank. They may also buy additional shares in the public tender offer, the Patagonia statement said.

Banco do Brasil first admitted in December that it was in talks with Patagonia, and the deal represents yet another step in the Brazilian bank’s international expansion in Latin America and outside the region.

Banco do Brasil said the two banks are complementary as Banco Patagonia is a retail bank (small and medium sized businesses) with a presence in all of Argentines provinces and Banco do Brasil will bring its corporate banking expertise to Argentina.

Banco do Brasil objective with the acquisition is to increase financing to Brazilian companies operating in Argentina and also to Argentine companies, diversify Banco Patagonia’s products and services and expand its loan portfolio, and also target micro and small-sized enterprises as well as payroll contracts and suppliers.

Banco Patagonia has 154 branches, 751,600 clients and US$ 2.56 billion in total assets as of the end of last year. Banco do Brasil presence in Argentina consists of only one branch in capital Buenos Aires.

“The association with Banco Patagonia is part of the Bank of Brasil strategy to accompany the expansion of Brazilian corporations worldwide with the purpose of servicing their needs,” said Bank of Brazil in a brief release. The bank is also interested in expanding in the United States in support of Brazilian and Latin American immigrants.

Banco do Brasil has assets totaling 407 billion USD; 173 billion USD in loans and 287 billion USD in deposits.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Made in Brazil: Rio Fashion Exports Grow 13%

The fashion industry in the southeastern Brazilian state of Rio de Janeiro consolidated its ...

Brazil to Get 5% Biofuel in Its Diesel Three Years Earlier

The Brazilian government intends to anticipate in three years – from 2013 to 2010 ...

Presidents Lula and Bachelet

Brazil and Chile to Cooperate in Science, Biofuel and Education

Brazilian President, Luiz Inácio Lula da Silva, and Chilean President, Michelle Bachelet, are going ...

Volkswagen Brazil Strike Means 900 Less Cars a Day

Volkswagen Brazil workers voted Wednesday, August 30, to halt all activities in protest over ...

40 Years of Road and Brazil’s Ben Jor Is Still Fresh

Jorge Ben Jor needs little introduction ”“ the legendary singer/guitarist has been around the ...

IMF Asks More Flexibility from Brazil and G20 and Their Rich Counterparts

International Monetary Fund’s chief economist, Raghuram Rajan called on the 148 country members of ...

Canada Firm Bets on Brazilian Diamonds

Canada-based Braz Diamond Mining Inc. now controls Brazil’s largest known diamondiferous kimberlite. The company ...

Brazilian Beef Gets Quality Seal

Like French champagne, camembert cheese and other famous products, farmers from the southwestern region ...

8.3%! Brazil Hadn’t Grown That Much in 18 Years.

Thanks to some revisions by the IBGE (Instituto Brasileiro de Geografia and EstatÀ­stica – ...

Brazil Loses Millions of Tons of Grains Due to Errors

Between 1996 and 2000 Brazil failed to harvest around 28 million tons of grains, ...