Itau Unibanco Holding SA is Brazil's biggest private sector bank. On Monday it has announced acquisition of 51% stake in Chilean retailer Cencosud's CEN.SN credit card business. The acquisition for the credit card business stretches from Chile to Argentina and is priced at US$307 million.

The deal is projected to complete in 12 to 18 months. Itau will fund all credit card loans that is valued roughly US$1.3 billion according to a joint statement issued by the company.

The terms of the deals include Cencosud's credit card unit share acquisition by Itau. The deal needs to be approved by regulators in Brazil, Chile and Argentina. Cencosud CEO Daniel Rodriguez told reporters that the collaboration is a part of the company's long-term strategic plan. It aims to help boost the financial services it offers its clients without having to use its own resources. The need proceeds from the sale will be used for debt reduction and finance growth, he added.