Citi sells Brazil units to Itaú-Unibanco

Financial Times May 15 2013
Citigroup has sold its Brazilian consumer finance units to local bank Itaú-Unibanco for R$2.77bn, as the US lender looks to withdraw from part of the country’s fiercely competitive retail banking market. Itaú, which ranks as Brazil’s biggest bank by market value, will take over Citigroup’s Credicard unit, an R$8bn-asset business which includes the Credicard brand and credit cards as well as 96 consumer finance outlets.
The acquisition of Credicard, a company that Itaú helped create and in which it was a partner until 2006, strengthens the Brazilian bank’s hold over the country’s credit card market.
The deal will increase Itaú’s share of the country’s card market to 40 per cent from 30 per cent, guaranteeing the bank’s dominance over local rival Bradesco, which has only 20 per cent and which was reported also to have bid for Credicard.
Read more…