Brazil Chase Manhattan Unit Buys Local Banco Patrimonio
Dow Jones Newswires
SAO PAULO -- Banco Chase Manhattan SA, a unit of the Chase Manhattan Corporation (CMB), announced Thursday it will acquire substantially all of the business of local Banco Patrimonio de Investimento SA.
Terms of the transaction weren't immediately disclosed.
Under the agreement, the acquisition doesn't include the bank through which Patrimonio has conducted its business or the private equity business, although Chase will acquire all rights to the Patrimonio trademark.
"With this transaction, Chase is positioned to become the leading investment bank in Brazil and a market leader in all major wholesale financial products," William Harrison, vice chairman of the Chase Manhattan Corporation said in a written statement. "Our acquisition of Patrimonio also underscores Chase's long-term commitment to Brazil, to Latin America and to emerging markets in general."
The transaction, which is subject to regulatory approval, is expected to be completed by the end of the first quarter.
Later at a press conference, Banco Chase president and CEO Patrick Morin said the objective of the acquisition "is very clear": "Chase wants to increase its market share in investment banking."
"Patrimonio is known as a strong and active player in investment banking, and Chase will be incorporating a very solid team of professionals," he said.
Chase and Patrimonio would rather call the transaction announced Thursday as a "merger agreement, since both teams will merge." For instance, Patrimonio's current president, Jair Ribeiro, will become chief operating officer of Banco Chase.
"Chase actually bought Patrimonio, but not its legal registration with Brazilian authorities," explained Ribeiro. "In practical terms, Chase bought everything - our clientele - but our cash flow," he added.
Morin said he informed Central Bank president Gustavo Franco of the acquisition Wednesday, and that government approval is likely - but not official yet.
Ribeiro said Banco Patrimonio's net equity currently stands at some 85 million reals (BRR) ($1=BRR1.20).
Chase's net worth in Brazil amounted to BRR263 million in end-November.
Each of the institutions manage a total $1.3 billion worth of third-party assets.
|
