Brazil's antitrust body recommends restrictions on HSBC-Bradesco deal

Banco Bradesco

04/04/2016 13:10

BRASILIA, April 4 (Reuters) - A preliminary report by 
Brazil's antitrust regulator recommended imposing restrictions 
on Bradesco SA's  BBDC4.SA  purchase of the Brazilian unit of 
HSBC Holdings PLC  HSBA.L , according to the official gazette on 
Monday. 
   The board of Brazil's antitrust regulator Cade said it should 
grant the deal final approval provided the banks agree on 
measures to minimize market concentration. The recommendation is 
not binding and is subject to approval by a separate Cade court. 
    According to Cade, despite HSBC's small market share in 
Brazil, any merger operation should be viewed with caution 
because of "clear evidences" of low competitiveness in Brazil's 
banking industry, in which lenders have one of the world's 
highest profit margins. 
    The central bank approved the $5.2 billion acquisition in 
January. Bradesco first announced the deal in August. 
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 (Reporting by Silvio Cascione; Editing by Chizu Nomiyama) 
 ((silvio.cascione@thomsonreuters.com; +55 61 3426 7015; Reuters 
Messaging: silvio.cascione.thomsonreuters.com@reuters.net)) 
 
Keywords: HSBC BANCO BRADESCO/