Itau Unibanco, Brazil's largest non-government bank, struck a deal to pay 725 million reais ($457 million) for a 49 percent stake in Carrefour's Brazil consumer finance unit, expanding its presence in the nation's fastest-growing lending segment. Itau Unibanco (ITUB4.SA)(ITUB.N) will pay the equivalent of 11.6 times Banco Carrefour's projected earnings for the stake, according to a securities filing on Thursday. The transaction requires central bank approval. The move underscores growing competition among banks to get a foothold in Brazil's red-hot retail market. Itau Unibanco trumped Banco Bradesco (BBDC4.SA), Banco do Brasil (BBAS3.SA) and Santander Brasil (SANB11.SA) for the stake by offering Carrefour longer credit lines for its clients, analysts said. "Taking into account that retail is one of the economy's leading sectors, the transaction is an excellent opportunity to strengthen our presence in this sector," Rogerio Calderon, Itau Unibanco's corporate vice president for risk assessment and control, was quoted as saying in the filing.
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