HSBC Sells Out of Brazil

HSBC Holdings announced that it will sell its Brazilian unit to Banco Bradesco SA for US $ 5.2 billion, coming out of the second largest emerging market economy after years of mediocre performance, according to Reuters.

In a statement, HSBC said the agreement includes the sale to Bradesco of the HSBC Bank Brasil SA Banco Múltiplo and HSBC Serviços e Participações Ltda units. The agreement, which is subject to regulatory approval and was sealed on July 31, should be completed in June of next year.

Bradesco also confirmed the purchase in a statement. The acquisition will enable Bradesco, Brazil’s second largest private sector bank, to close the asset gap with Caixa Econômica Federal and, especially, its biggest rival in the private sector, Itaú Unibanco Holding SA.