Banco Bradesco SA agreed to purchase HSBC Holdings Plc's Brazilian unit for 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 banks 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 purchase price, which could change to reflect the net asset value of both businesses, is equivalent to 1.8 times book value, way 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.Shares of Bradesco posted their steepest drop since July 23, shedding 4 percent.
Banco Bradesco S.A. (the Bank) is a commercial bank. Shares of BBD fell by 3.15% or $-0.25/share to $7.69. 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 2457605.
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 504.