Bradesco walks away from talks to purchase HSBC's Losango unit, report says

- Friday, December 30, 2011

Bradesco walks away from talks to purchase HSBC's Losango unit, report says

Brazil's second biggest private sector bank, Bradesco (NYSE: BBD), has backed out of talks to buy UK bank HSBC's (NYSE: HBC) Brazilian consumer finance arm, Losango, local daily Estado do S Paulo reported unnamed sources as saying.

HSBC is reportedly seeking to sell Losango as part of a strategic shift to focus more on the high-end banking market in Brazil. Losango is the country's largest consumer finance company.

The report said Bradesco and HSBC had failed to agree on price and also on how to handle potential labor disputes and layoffs.

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Several local banks showed interest in Losango earlier this year, but Bradesco had recently been seen as the most likely buyer of the HSBC unit, according to the report.

Earlier this year, HSBC sold its retail banking operations in Chile to Brazil's Itaú Unibanco (NYSE: ITUB) as part of a global cost-cutting plan.