STXNEWS LATAM-Brazil approves BTG Pactual's purchase of failed bank assets

Mon Jul 21, 2014 9:20am EDT

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Brazil's antitrust watchdog Cade approved Grupo BTG Pactual SA's purchase of a 98 percent stake in failed lender Banco Mercantil e Industrial do ParanĂ¡ SA, according to a government official gazette announcement on Monday. The liquidation of Bamerindus, as the failed bank was commonly known, was ordered by the central bank in 1998. Currently, the privately owned FGC, as the Brazilian equivalent of the FDIC in the United States is known, is Bamerindus's largest creditor.

According to Cade, BTG Pactual, the largest Latin American independent investment bank, has "a great business options by which it can acquire assets and other credit rights held by Bamerindus that could be used for future credit."

Units of BTG Pactual - a blend of the bank's common and preferred shares in its investment banking and private equity units - rose 0.1 percent to 35.23 reais on Monday.

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