Brazilian banks drive Latin M&A rebound
Banco do Brasil considering US acquisitions; M&A volumes expected to pick up
Latin America M&A volume in 2009
Banco do Brasil is eyeing acquisition opportunities in the US and Latin America as part of an expected M&A boom driven by the region’s leading companies this year. "We noticed that our customers have started an intensive globalization process and are going abroad to establish offices, not just representative offices but full operations, and they are asking for us to provide the products and services in these other countries that we do in Brazil," says Admilson Garcia, head of international operations at state-owned Banco do Brasil. "So we realize we must go and expand abroad or we are going to lose market share, especially as there are other global banks that cover the Latin region. We have prioritized Argentina and the US this year and are already in talks with several potential targets. We are very keen to make acquisitions soon."
Banco do Brasil initially planned to grow organically in the US but the financial downturn has meant that the bank hasn’t been able to obtain licences.