Banco Bradesco SA agreed to purchase HSBC Holdings Plc's Brazilian unit for a surprisingly high 17.6 billion reais ($5.2 billion), narrowing the gap with larger rivals while boosting its base of affluent customers in Latin America's largest economy.The deal between Bradesco and Europe's largest bank includes the latter's Brazilian retail banking and insurance units. The agreement, which still requires regulatory approval and was sealed on July 31, could close by June.The all-cash acquisition will allow Bradesco to close the asset gap with larger rivals Ita� Unibanco Holding SA and state-controlled banks Banco do Brasil SA and Caixa Econ�mica Federal. HSBC Brasil's focus on high-income customers fits well into Bradesco's plan to ramp up sales of specialized financial services for the wealthy and larger corporations. The purchase price, which could change to reflect the net asset value of both businesses, is equivalent to 1.8 times book value, far above what analysts expected and above Bradesco's own valuation. Reuters reported on July 20 that Bradesco had entered exclusive talks with HSBC after offering to pay about 12 billion reais, or 1.2 times book value.
Banco Bradesco S.A. (the Bank) is a commercial bank. Shares of BBD fell by 3.65% or $-0.29/share to $7.65. In the past year, the shares have traded as low as $7.57 and as high as $18.67. On average, 9362590 shares of BBD exchange hands on a given day and today's volume is recorded at 14209987.
Shares of BBDO fell by 4.21% or $-0.34/share to $7.73. In the past year, the shares have traded as low as $7.57 and as high as $18.25. On average, 3792 shares of BBDO exchange hands on a given day and today's volume is recorded at 509.