April 16, 2018 / 1:34 PM / 2 years ago

Brazil central bank mulls veto or limits on XP-Itau deal -media

BRASILIA, April 16 (Reuters) - Brazil’s central bank is considering rejecting or imposing restrictions on Itaú Unibanco Holding SA’s purchase of a non-controlling stake in financial services firm XP Investimentos SA, a Brazilian newspaper reported on Monday.

The matter is being looked at by the central bank’s organization directorate, officially responsible for analyzing the case, but is being informally discussed more widely at the bank, Valor Economico reported, without saying how it obtained the information.

Antitrust regulator Cade approved the purchase by Itau, Brazil’s largest bank, in March by a vote of five to two. The central bank has until July to issue a decision, although it is expected to act sooner, according to Valor. nL1N1QW1BD]

Itaú is proposing to buy a 74.9 percent stake in XP and a 49.9 percent stake in its voting capital by 2022 for 5.7 billion reais ($1.67 billion).

Under the terms of the deal, Itaú could take on a controlling stake in XP’s voting capital as soon as 2024, which would require separate approval by Cade and the central bank.

Brazil’s central bank and Itau did not have an immediate comment. XP declined to comment.

$1 = 3.41 reais Reporting by Jake Spring

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