Brazil: Banco Central will approve purchase of XP by Itaú

Brazil’s central bank announced that it will approve the sale of a minority stake in the financial services firm XP Investimentos SA to major lender Itaú Unibanco Holding SA, but will not approve a change in control.

Itaú, Brazil’s largest bank, intends to purchase a 49.9% stake in XP’s voting capital of 5.7 billion reais (US $ 1.5 billion), guaranteeing a better position in the retail financial services market for the bank as the sector quickly expands.

In March, the Administrative Council of Economic Defense (CADE), the competition watchdog, approved the sale of the minority stake but two of the seven members of its board of directors voted against the move. Under the agreement, Itaú could acquire a majority stake in XP in 2024 if the shareholders exercise that option, or do so in 2033, even without the consent of the shareholders.

Full Content: America Economia

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