HSBC Holdings Plc agreed to sell its Brazilian unit to Banco Bradesco SA for $5.2 billion, retreating from the second-largest emerging market economy after years of disappointing performance.Europe's No. 1 bank said in a statement on Monday that the accord with Bradesco includes the disposal of the HSBC Bank Brasil SA Banco M�ltiplo and the HSBC Servi�os e Participa��es Ltda units. The sale, which still requires regulatory approval and was sealed on July 31, could be completed by June next year. The purchase price, which could undergo adjustments to reflect the net asset value of both businesses and is equivalent to 1.8 times book value, was way above what analysts expected. 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, for HSBC Brasil.Other sources had told Reuters in June that fellow suitor Ita� Unibanco Holding SA had placed a bid below book value for HSBC's Brazilian business. Bradesco, Brazil's second-largest private-sector bank, is currently trading at about 1.5 times book value.
Banco Bradesco S.A. (the Bank) is a commercial bank. Shares of BBD fell by 0.75% or $-0.06/share to $7.94. In the past year, the shares have traded as low as $7.74 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 10966206.
Shares of BBDO traded higher by 2.54% or $0.2/share to $8.07. 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 2368.
HSBC Holdings plc (HSBC) is the banking and financial services company. Shares of HSBC traded higher by 0.13% or $0.06/share to $45.07. In the past year, the shares have traded as low as $41.20 and as high as $54.42. On average, 1777000 shares of HSBC exchange hands on a given day and today's volume is recorded at 1302614.