Brazilian banks mergers: BTG Pactual partners with SMBC and Itau buys stake in Carrefour Bank

In the past days, Brazilian banks mergers hit the news. First, it was Banco do Brasil, acting according to its internationalization strategy, just acquired another bank in Argentina. Now, BTG Pactual, an independent investment bank in Brazil, signed a memorandum of understanding with Sumitomo Mitsui Banking Corporation (SMBC) to work together in Brazilian-related business activities and Itau-Unibanco announced the purchase of 49% of Banco Carrefour in Brazil. What to make of it? 

BTG and SMBC

The goal is to support Asian clients operating in Brazil and Latin America in  areas such as corporate finance, structured products, securitization, and cross border M&A.  They will also offer joint lending for mining projects in Central and South America, an industry where Brazilians and Japanese have been collaborating since the 1960th.

BTG Pactual is the leading investment bank in Brazil in issuing shares, according to consulting firm Dealogic, in mergers and acquisitions (Thomson Reuters, 2010) and issuance of long-term debentures (Anbima, 2010). It is a major global resource managers based in emerging markets, with more than $ 90 billion under management. BTG Pactual has had an eye outside Brazil for some time. Just to give an example, last year, the bank did a road show in the Middle East to promote its private equity funds.

In addition, SMBC will market BTG Pactual investment products in Asia.

SMBC established Latin Americas Marketing Department, Americas Division to continue to strengthen and increase its presence in the region under its global expansion strategy.

ITAU-UNIBANCO strenghening retail domesticly

The giant controlled by the family Setubal yesterday announced the purchase of 49% of Banco Carrefour, which has 163 supermarkets and hypermarkets and Carrefour banner, on the basis of 12.5 million cards and credit portfolio of R $ 2.3 billion . The profit in 2010 was R $ 155.4 million.

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About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Bureau. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil. She lives between Paris and Rio and is a member of the Harvard Club of Paris and of the Mercosur Women’s Forum.
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