BANCO DO BRASIL officially announced the acquisition of the sixth largest bank in Argentina, Banco Patagonia. The $480 millions deal was sealed after four months of negotiations. What does it mean in the strategy of the largest Brazilian bank? Should it reflect a step toward the integration of the Mercosul?
With branches in New York, London and Paris and other 20 countries around the world, Banco do Brazil, has been a historic supporter of Brazilian companies abroad.
The move in Argentina may represent a variant strategy. Banco Patagonia has 154 branches distributed throughout the country, and over 750 000 customers. So it is a different kind of presence from the other 23 countries.
Some benefits may arise from the acquisition. It will be easier for customers to use services such as cash management, payments and collections, in Brazil and Argentina. Moreover, it will benefit companies with operations in both countries not to mention trade.
Banco do Brazil follows the trend of internationalization of Brazilian companies, aiming to strengthen the presence of their goods and services in international markets. Capitalized, the Brazilian banks are in a good position to go shopping for bargains in the world.
The internationalization of the Brazilian banks began in the 80s. As a bank controlled by the state, Banco do Brasil had to wait until 2008, when the legislation gave green light for international acquisitions.