January 29, 2014 / 1:15 PM / 4 years ago

Brazil's Itaú to own 50.5 pct of new bank with CorpBanca -executive

SAO PAULO, Jan 29 (Reuters) - Brazil’s Itaú Unibanco Holding SA will control 50.5 percent of a new entity resulting from a combination of assets with Chile’s CorpBanca SA , said a senior executive on Wednesday.

Itaú expects to obtain $100 million a year in cost savings stemming from the creation of Itaú CorpBanca, Ricardo Marino, head of Itaú’s Latin American business, said on a conference call.

Itaú, Latin America’s largest bank by market value, took a key step in its overseas expansion plan on Wednesday with a deal to take control of CorpBanca SA. Under the terms of the cash and stock transaction, Itaú will pump $652 million into its Chilean unit, and then combine it with CorpBanca, according to a securities filing.

The combined entity, which will be named Itaú CorpBanca, will be majority held by the São Paulo-based lender and also will manage the Colombian subsidiaries of both lenders, the filing added.

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