Bradesco Pursues Ibi Mexico

Brazil’s Banco Bradesco has signed a memorandum of understanding to acquire credit-card issuer Ibi Mexico for an undisclosed amount in cash, according to a bank spokesman. This is not Bradesco’s first deal with Ibi. In June 2009 it acquired Ibi’s Brazil unit for about BRL1.4bn in stock. Similar to the Brazil deal, Bradesco will take over Ibi Mexico’s credit portfolio of MXP1.3bn. The transaction includes execution of a 20-year partnership agreement with clothing retailer C&A Mexico to jointly and exclusively sell financial products and services through the C&A Mexico chain. Ibi Mexico has shareholder equity of MXP566m. A Bradesco spokesman says the bank is still doing due diligence and a final price will be disclosed by the end of March, when the deal closes.