May 31, 2011 / 7:54 PM / 7 years ago

Banco do Brasil wins post office deal for $1.7 bln

* Banco do Brasil wins right to open post-office branches

* Post office present in 95 pct of Brazil municipalities

* Banco do Brasil shares fall in Sao Paulo trading

RIO DE JANEIRO, May 31 (Reuters) - Banco do Brasil (BBAS3.SA), Latin America’s largest bank by assets, won a tender to provide banking services at the agencies of Brazil’s state-owned postal service for 2.8 billion reais ($1.78 billion).

The 5-year contract begins Jan. 1, 2012 and will give Banco do Brasil access to 6,195 post offices spread out through 95 percent of Brazil’s municipalities, the Brasilia-based bank said in a statement on Tuesday.

Banco do Brasil entered bidding for the country’s postal-banking rights to meet its goal of being able to provide banking services in all of Brazil’s municipalities, the statement added.

    The statement did not provide the names of other bidders for the rights, which are being sold by Empresa Brasileira de Correios e Telegrafos, the state-owned postal system better known as simply “Correios.”

    Brazil has more than 190 million people living in 5,565 municipal districts, some concentrated in mega-cities such as Rio de Janeiro and Sao Paulo, others spread over huge swaths of the country’s Amazon jungle or sprawling agricultural interior.

    While controlled by Brazil’s government or entities controlled by the government, 30 percent of Banco do Brasil’s stock is held by private investors and other non-government investors.

    Banco do Brasil shares were down 1.59 percent at 27.85 reais in Sao Paulo trading.

    ($1.00 = 1.578 reais)

    Reporting by Jeb Blount and Aluisio Alves; Editing by Richard Chang

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