Banking - Venezuela

Venezuela's Banesco buys majority stake in Spanish bank Banco Etcheverría

Venezuela's Banesco buys majority stake in Spanish bank Banco Etcheverría

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Venezuela's Banesco has bought a majority stake in Galicia-based Banco Etcheverría by acquiring the 44.7% owned in the latter by nationalized Spanish bank Novagalicia Banco (NGB) as well as shares owned by the local Etcheverría family, a Banesco spokesperson told BNamericas.

No financial terms of the deal were disclosed.

The deal aims at strengthening Banco Etcheverría's financing to individuals and SMEs in Galicia and speeding up its growth plan, which includes opening 50 new branches, Banesco said in a press release.

NGB is one of the three recently nationalized Spanish banks that have to halve their balance sheets in five years and cut jobs in return for receiving European aid to solve the country's banking crisis.

Banesco - Venezuela's largest private bank - had US$35bn in assets and deposits of US$27bn at the end of November.

It also operates in Colombia, the Dominican Republic, Panama, Puerto Rico and the US.