Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Lloyds to buy out Brazilian bank

Jill Treanor Banking Correspondent
Wednesday 05 February 1997 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Lloyds TSB has begun talks to buy out the consumer banking arm of its half-owned Brazilian associate, Banco Multiplic. The price of the business was not disclosed but analysts suggested it could be worth as much as pounds 300m.

The UK bank said yesterday that it was negotiating the deal with Multiplic Empreendimentos e Comercio (MEC), the other 50 per cent shareholder in Banco Multiplic. MEC is owned by two equal partners, Antonio Jose Carnerio and Ronaldo Cezar Coelho.

While the deal could take six months to be concluded, it was welcomed by analysts, who predicted a more stable economic environment in Brazil, which could mean a slowdown in bad debt provisioning.

Lloyds said a further announcement would be made as soon as possible.

Analysts, however, did not expect Lloyds' presence in Brazil to extend beyond Banco Multiplic, which made net profits of $110m (pounds 67m) in 1995 after recording a loss the previous year.

While Lloyds has been concentrating on its UK retail banking business in recent years and selling out of its overseas operations, it has largely retained its presence in Latin America.

It has had an operation in Brazil for more than a century and has been involved with Banco Multiplic since it was set up around 20 years ago.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in