CCB nears closing of Bicbanco buyout - source

By Rizza Sta. Ana

Oct 30, 2013 03:49 AM EDT

According to a source who had exclusive knowledge of the matter, China Construction Bank Corp (CCB) was close to finalizing a deal to acquire Banco Industrial & Comercial SA (BicBanco). The source also said the Sao Paulo-based lender could fetch more than its current market value of BRL1.67 billion or USD764 million. The source refused to be named as negotiations about the deal were private.

The source also disclosed that the terms of the buyout would have CCB purchase a 70% ownership stake from the Menezes de Bezerra family. The family has a controlling interest in the Brazilian bank. CCB, the source added, would be extending a tender offer to the rest of the minority shareholders.

The acquisition by CCB of BicBanco was the easiest strategy for the Chinese bank to acquire a local license, said the source.

UOB Kay Hian Holdings Ltd analyst Edmond Law said, "Chinese banks are interested in Brazil because it is an emerging market with faster economic growth. The resources sector there is booming, creating fresh demand for banking services that the Chinese lenders can tap."

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics