Mexican Microlender Consumes Peer

Mexico microfinance bank Financiera Independencia says it has agreed to acquire its peer Financiera Finsol for MXP530m ($40.9m). The buyer says it will issue up to 85m shares to finance the transaction. This deal will allow Independencia to expand in Mexico, where Finsol has 158 branches, and enter the Brazilian market, where Finsol has 16 branches, the buyer says. After closing, expected in the first quarter of 2010, Independencia says it will have a total of 356 branches and increase its loan portfolio by MXP794.6m to MXP5.6bn. Credit Suisse advised Independencia.