Bradesco buys HSBC Brazil for US$5,2 billion.
The amount to be paid by the bank headed by Luiz Carlos Trabuco was well above the previously speculated US$4 billion; with the purchase, Bradesco reduces the gap with Itaú Unibanco (ITUB4) in asset value; the Brazilian bank acquired HSBC's retail and wholesale businesses in Brazil; with the subsidiary, which has R$160 billion in assets, Bradesco reaches R$1,193 trillion; HSBC's loan portfolio is mainly composed of commercial loans (70% of the total), while loans to individuals account for 22% - the remaining 8% are mortgages.
SÃO PAULO - Bradesco (BBDC4) confirmed its status as the favorite and, in the early hours of Monday (3), the purchase of HSBC's Brazilian operation was made official, as highlighted by HSBC in its results report. The purchase was made for US$ 5,2 billion, or R$ 17,6 billion.
The Central Bank was notified last night of the outcome of the transaction.
Thus, the amount to be paid for the bank's national operation was well above the previously suggested US$4 billion. In recent weeks, estimates for the deal ranged between R$10 and R$12 billion.
"On July 31, we reached an agreement to sell our Brazilian business to Banco Bradesco SA for US$5,2 billion. As we have stated previously, we plan to maintain a modest presence in the Brazilian businesses to serve our international clients in the country. This transaction offers excellent shareholder value and represents a significant delivery of the goals we announced in June," HSBC reported.
With the purchase, Bradesco reduces the gap with Itaú Unibanco (ITUB4) in asset value. The Brazilian bank bought HSBC's retail and wholesale businesses in Brazil. With the subsidiary, which has R$ 160 billion in assets, Bradesco reaches R$ 1,193 trillion.
HSBC's loan portfolio is primarily composed of commercial loans (70% of the total), while loans to individuals account for 22% - the remaining 8% are mortgages. HSBC has 5 million customers and 853 branches, employing approximately 21,4 people.