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Citigroup plans sale of Brazil unit by month-end -report
March 7, 2013 / 12:16 PM / 5 years ago

Citigroup plans sale of Brazil unit by month-end -report

* Santander Brasil, Bradesco among potential buyers -Valor

* Transaction could be valued up to $761 million

SAO PAULO, March 7 (Reuters) - Citigroup Inc plans to finalize the sale of its consumer financial units in Brazil by the end of the month in a deal worth as much as 1.5 billion reais ($761 million), newspaper Valor Economico said in a report on Thursday.

About three banks, including Banco Santander Brasil SA and Banco Bradesco SA, may consider bidding for Citi’s Credicard and Credicard Financiamentos and were allowed to access a data room, Valor said, citing unnamed sources.

With the sale, Citigroup could be making progress in a longstanding plan to exit noncore business areas in key markets.

On the other hand, a purchase of Credicard could help bulk up the merchant acquiring business of any of Brazil’s top three private-sector banks, which currently with their units dominate more than 90 percent of the card-payment processing market.

The sale could be concluded by the end of this month, in time to have a positive impact on Citi’s first-quarter results.

Bradesco and Santander declined to comment on the report, and Citigroup were not immediately available for comment.

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