Brazil’s Itaíº Swallows BankBoston in Chile and Uruguay

The leading Brazilian bank Itaú announced yesterday it had reached a deal with Bank of America for the purchase of all assets belonging to BankBoston in Chile and Uruguay.

The negotiation begun last May following the acquisition of BankBoston assets in Brazil.
Itaú which is Brazil’s second private bank in assets said it was paying the equivalent of 1.05 million US dollars to take over BankBoston in Chile and Uruguay. The bank will also issue ordinary shares equivalent to 1.7% of its capital.

According to Itaú taking the February 21-April 24 period average share price the value of the 20.5 million shares to be issued is equivalent to some 627 million US dollars.

"These acquisitions are consistent with Itaú’s capital business which represents additional value to shareholders, with the purpose of giving sustainability to Itaú and also confirm the bank’s trust in the region", said Itaú in a release for equity holders.

Further on the release describes Chile as a "mature economy" with solid internationally acknowledged institutions, as shown by the investment grade awarded to the country by the risk assessment agency Moody’s.

With the new acquisitions Itaú estimates its assets in 203 billion reais equivalent to 92.8 billion US dollars. With the expansion to new markets the number of clients will also increase considerably, from 17.2 million to 18.1 million, adds the release.

Tags:

You May Also Like

President Obama Hails Lula and Brazil for Leading by Example

American president Barack Obama described his Chilean peer Michelle Bachelet as "one of the ...

Brazil Reaches Self-Sufficiency in Oil Before Christmas

The president of the state-owned Brazilian oil company Petrobras, José Sérgio Gabrielli, says that ...

Despite Privatization Threats Brazil to Invest US$ 5 Bi in Bolivia

Petrobras, Brazil’s government owned oil company is planning to invest US$ 5 billion in ...

Exploring the Intimacy of Palestine Refugees in Brazil

Stela Grisotti and Paschoal Samora packed their bags and traveled to Jordan to spend ...

Brazil Uses Stem Cells to Treat Chagas’ Patients

In Brazil, stem cells are being used to treat Chagas’ disease in its chronic ...

Brazil’s Internet Surfer Population Reaches 39%

In a surprising result for many, the number of Brazilians who have access to ...

Brazil Silences Community Radios

Given the populism from which current Brazilian President Lula’s campaign emerged, proponents of community ...

Brazil Offers Anti-smoking Medication in Free Clinics Across the Country

Brazil’s Minister of Health, Humberto Costa, announced that medications to help people quit smoking ...

Brazil’s Cardoso: ‘The World Changed, But the Left Stayed the Same’

Shortly after the November 2, 2004 United States election, Brazilian Senator Cristovam Buarque paid ...

Brazilian Bug Helps New Zealand Fight Killer Weed

A quiet bush clad reserve in the heart of the Manawatu, a New Zealand ...