BBVA announced today that it had sold its Brazilian affiliate, BBV Banco, to Banco Bradesco, S.A. in exchange for a stake in the latter’s share capital. The two banks will ratify the agreement when the pertinent Due Diligence has been concluded, and the authorization of the different regulatory authorities involved has been obtained.
The BBVA Brazilian banking and insurance business activities conducted by BBV Banco and its affiliates, will be integrated with Banco Bradesco, S.A. by transferring all the BBV Banco shares held by BBVA to Banco Bradesco, S.A. In return for these shares, BBVA will receive newly issued ordinary shares and preferred shares in Banco Bradesco, S.A. totalling 4.5 % of its share capital, as well as approximately 2,000 million Brazilian Reales in cash.
Under the agreement, BBVA will be entitled to appoint a member to the Board of Directors of Banco Bradesco, S.A. and to set up a business area within Bradesco specifically devoted to the origination of business between BBVA and Bradesco, the provision of banking services to BBVA customers by Bradesco, and other areas of cooperation between the two banks.
The definitive agreements regarding the integration of BBV Banco in Banco Bradesco, S.A., BBVA`s presence in the shareholding structure of Banco Bradesco, S.A. and on its Board of Directors are expected to be finalized during the first half of 2003.
This strategic agreement bolsters the foothold of Banco Bilbao Vizcaya Argentaria, S.A. in the Brazilian market through its stake in Brazil’s leading private bank, and reinforces the bank’s confidence in Brazil’s present and future.