Banco Bradesco SA (BBDC4) is close to buying HSBC Holdings Plc (HSBA)’s Brazil consumer-finance unit, Losango, for about 750 million reais ($415 million), according to two people familiar with the deal.
Bradesco, Brazil’s second-largest bank by market value, is growing through acquisitions and bought state-controlled Banco do Estado do Rio de Janeiro at an auction on May 20, outbidding its main rivals by 41 percent.
Bradesco, based in Osasco, made a winning bid of 1.03 billion reais ($632 million) for the lender known as Berj.
HSBC bought Losango in 2003 as part of a deal to acquire Lloyds TSB’s Brazilian assets for $851 million.
Losango has 3 billion reais ($1.75 billion) in loans and about 2 million private label credit cards issued in partnership with retail companies in Brazil.
Losango holds a 21 percent share of Brazil’s personal loan market, according to HSBC.
HSBC, based in London, said in August it would eliminate 30,000 jobs by the end of 2013, about 10 percent of the total, as it slashes costs and closes offices.
The company is trying to reduce expenses by as much as $3.5 billion over the next two years as it tackles wage inflation in faster-growing economies and prepares for stricter capital rules.
Officials at Bradesco and HSBC declined to comment on potential acquisitions.
The people familiar with the deal asked not to be named because the talks are private.
bloomberg.com
Bradesco, Brazil’s second-largest bank by market value, is growing through acquisitions and bought state-controlled Banco do Estado do Rio de Janeiro at an auction on May 20, outbidding its main rivals by 41 percent.
Bradesco, based in Osasco, made a winning bid of 1.03 billion reais ($632 million) for the lender known as Berj.
HSBC bought Losango in 2003 as part of a deal to acquire Lloyds TSB’s Brazilian assets for $851 million.
Losango has 3 billion reais ($1.75 billion) in loans and about 2 million private label credit cards issued in partnership with retail companies in Brazil.
Losango holds a 21 percent share of Brazil’s personal loan market, according to HSBC.
HSBC, based in London, said in August it would eliminate 30,000 jobs by the end of 2013, about 10 percent of the total, as it slashes costs and closes offices.
The company is trying to reduce expenses by as much as $3.5 billion over the next two years as it tackles wage inflation in faster-growing economies and prepares for stricter capital rules.
Officials at Bradesco and HSBC declined to comment on potential acquisitions.
The people familiar with the deal asked not to be named because the talks are private.
bloomberg.com
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