MercoPress. South Atlantic News Agency

Brazilian bank plans to enter the Mexican retail banking market

Bradesco is Brazil's No. 2 non-state bank

Brazil’s Banco Bradesco announced Friday that it plans to enter the Mexican retail banking market through the acquisition of Ibi Mexico

The purchase, for an undisclosed sum, is outlined in a memorandum of understanding Bradesco signed with Ibi's corporate parent, Cofra Holding AG, a holding company that also owns the C&A Mexico retail chain.

Bradesco, Brazil's No. 2 non-state bank, said it expects the transaction to be completed by March 30, subject to regulatory approval in both countries.

Ibi Mexico's loan portfolio amounts to the equivalent of 100 million US dollars and it has issued more than 1 million credit cards, Bradesco said. The Mexican institution's shareholder equity is 566 million pesos ($43.8 million).

The deal includes a 20-year partnership ”to jointly and exclusively sell financial products and services through the C&A Mexico chain. Bradesco.