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Text size [+][-]  Thursday March 18 2010GLOBAL EDITION

Considered view
03 Nov 2008 21:58

Brazilian banks

Context News

The controlling shareholders of Itausa and Unibanco Holdings agreed to merge the second and fourth-largest Brazilian banks to create Latin America’s biggest financial institution.

Unibanco and Unibanco Holding shareholders will receive 1.1797 shares in the new company, Itau Unibanco Holding, for each share held. The shares more than doubled in Brazilian trading on the announcement.

 

Banco Itau’s $15bn swoop on rival Unibanco shines the spotlight on a country still relatively underleveraged and where loans are growing by a third annually. Throw in synergies and Itau’s logic and timing looks impeccable.

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More stories by:  Rob Cox






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