Bradesco buys Banco BMC

25 January 2007

Brazil's Banco Bradesco has announced that it has agreed to purchase rival Banco BMC in a $375.6 million deal.

The move is designed to increase Bradesco's loan portfolio and will see all the stocks representing BMC's social capital transferred to Bradesco.

Bradesco is Brazil's largest private sector bank and the agreement consolidates its position in the market, taking over the operations of one of Brazil's largest banks specializing in payroll deductible loans for retirees and pensioners.

Shares in Bradesco grew by 0.9 per cent on the news of the deal.

A statement from Bradesco explained its motives behind agreeing the deal: "The merger will provide Bradesco with an increasing platform in Brazil's most prominent segment of the consumer financing market, as well as with a strengthened presence in the financing of SMEs."

Bradesco added that confirmation of the arrangement is still subject to the approval by the relevant authorities and the results of the due diligence process, which should be completed by the end of the first half of 2007.

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