BB announces execution of Share Purchase Agreement to acquire a bank in United States

Headquartered in Miami, Eurobank is active since 1986 and has all the required licenses and authorizations to operate in the retail market segment

Banco do Brasil informed the market today, 25/04/11, the execution of a Share Purchase Agreement for the acquisition of 100% of the outstanding shares of EuroBank. The acquisition of the North American bank, located in Florida, gives sequence to BB’s international expansion strategy.

According to market rules, the transaction will be subject to the approval of Brazilian and North American regulators. Until then, EuroBank continues to operate in the ordinary course of business, and no changes will be made to the brand, products or services portfolio.

The established sale price is US$ 6 million and will involve, within next months, the transfer of the totality of Eurobank’s shares to Banco do Brasil, allowing BB to accomplish its perspectives of acting in the U.S retail market.

Headquartered in Miami, Eurobank is active since 1986 and has all the required licenses and authorizations to operate in the retail market segment. Its lean structure that comprises three branches, as well as its location in one of the states with strongest Latin characteristics, favors the strategy of Banco do Brasil’s entering and future expansion in regions where there is a higher concentration of Brazilians, like New York, New Jersey and Boston.

By acquiring a North American bank, Banco do Brasil will increase its services to all its public and have the opportunity to broaden its businesses into the potential market, which is comprised of more than 1,5 million Brazilians living in the United States. BB intends to offer through Eurobank banking products like credit and debit cards, as well as banking accounts and diversified financing.
While Banco do Brasil is present in the U.S. since 1969 with branches in New York and Miami, its performance is limited – according to the local legislation – to the activities of a foreign bank, which restricts the sale of certain products and, consequently, the access to Brazilian communities in that country.

In the United States, Banco do Brasil has reorganized its structure to serve the Brazilian community and the companies operating in that market. The acquisition is associated to the units currently in operation in the U.S., which are: a corporate branch and a brokerage firm (Banco do Brasil Securities), both in New York; a private banking branch in Miami; a remittance company (BB Money Transfers), a service processing unit in Orlando and a representative office in Washington.

Key figures and indicators of Eurobank

Information as of 31st December, 2010 Amount in US$ million
Assets 102,1
Loan Portfolio 74,8
Deposits 91,4
Equity 5,5

International Expansion of Banco do Brasil

Established abroad 70 years ago, Banco do Brasil is the largest Brazilian with presence in the international market. Its network comprises 47 active units located in 23 countries with 13 branches, 8 sub-branches, 11 representative offices, 7 subsidiaries, 5 subsidiary branches, 2 shared services units and 1 business unit. Besides the own network, Banco do Brasil also maintains business relationships with 1.066 financial institutions in 133 countries.

Aligned to its international strategy, Banco do Brasil seeks to serve the Brazilian community abroad, providing services and credit to Brazilian companies and assistance to foreign trade. 

On April 2010, Banco do Brasil acquired control of Banco Patagonia, a retail bank with presence in all provinces of Argentina. The transaction allowed to expand the partnership with Brazilian and Argentine companies, expand Banco Patagonia loan portfolio, particularly in transactions with Brazilian and local companies from wholesale market segment, and also to act in the value chain of companies in Argentina.

Aiming to expand its activities in Asia, BB will establish a brokerage firm (Securities) in Singapore in order to develop capital market operations and will also turn its representative office in Shanghai into a branch. The goal is to gain competitive advantage in the Chinese market, being acknowledged as a pioneer, comparing to other Latin American Banks.

In Africa, BB has studied the most appropriate way to increase its current presence and, as soon as the analyses are completed, Banco do Brasil will opt for the alternative that presents greater adherence to its internationalization strategy. 

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