Brasília – Bradesco bought the Brazilian subsidiary of HSBC Bank, as reported by a Monday’s (3rd) press release to the financial market. With the acquisition, Bradesco will take over all operations of HSBC in Brazil, including retail, insurances and assets management, as well as all branches and clients.
According to Bradesco, HSBC’s clients will continue to have their services handled the usual way. HSBC plans to keep a minor presence in Brazil to provide services to corporate clients.
HSBC has 5 million account holders and branches in 529 Brazilian counties. “The acquisition will provide several benefits to the clients of both institutions, with the expansion of the number of branches and service network throughout the country and the access to products offered by both institutions”, said Bradesco in the press release.
The deal is still waiting the regulatory approval. The purchase price was of approximately US$ 5.186 billion, equivalent to around R$ 17.6 billion. HSBC’s net asset value in Brazil stands at R$ 11.2 billion (US$ 3.24 billion). According to Bradesco, this price will be adjusted by HSBC’s equity variation starting December, 31st, 2014, and will be paid at the deal’s conclusion.
*Translated by Sérgio Kakitani
