Bank of Communications nearing acquisition of BBM
(20 May 2015 – China) Bank of Communications Co, plans to acquire about 80 percent of Brazilian lender Banco BBM SA for an estimated US$200 million (A$250 million).
The private deal is expected to coincide with Chinese Premier Li Keqiang’s visit to Brazil, according to Bloomberg sources.
BBM’s founding Mariani family is expected to keep the remaining 20 percent stake in the bank.
This is Bank of Communications’ first overseas acquisition, however it adds to the purchases by Chinese banks in the past five years as they expand their global reach.
At the end of December 2014, BBM had a book value of 575.6 million reais (A$240 million).
Citigroup Inc. has acted as adviser to BBM while Goldman Sachs Group Inc has worked with Bank of Communications.
At present Bank of Communications has 56 outlets outside mainland China, including Hong Kong, New York and Tokyo.
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