June 13, 2018 / 11:29 AM / a year ago

Brazil's central bank to impose conditions on XP-Itau deal -media

BRASILIA/SAO PAULO, June 13 (Reuters) - Brazil’s central bank plans to impose restrictions on Itau Unibanco Holding SA’s purchase of a stake in financial services firm XP Investimentos SA, a Brazilian newspaper reported on Wednesday.

Several possible restrictions are being considered, with the preferred option that Itau be limited to buying a stake of 49.9 percent or less, Valor Economico reported, without citing the source of the information.

Itau, Brazil’s largest bank, is proposing to buy a 74.9 percent stake and a 49.9 percent stake in the voting capital in XP by 2022 for 5.7 billion reais.

Other possible restrictions include limiting Itau’s participation in governance of XP or that the parties agree to give up on options to buy and sell control that are laid out in the contract, according to Valor.

Itau, XP and the central bank did not immediately respond to requests for comment.

The newspaper cited an unnamed source saying that the bank is not considering vetoing the deal, but rather imposing significant restrictions.

Antitrust regulator Cade approved Itau’s purchase of the stake in XP in March.

Reporting by Jake Spring and Carolina Mandl Editing by Chizu Nomiyama

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