Bradesco wins auction for Berj with US$633mn bid
Bnamericas Published: Saturday, May 21, 2011
Government program Commercial & Retail Banking Legislation & Regulation Privatization Public-private partnership (PPP)
Brazil's second largest bank, Bradesco (NYSE: BBD), won an auction for Rio de Janeiro's state-owned bank Berj with a bid of 1.03bn reais (US$633mn), the state government said in a press release. The government had sought to sell Berj for several years, and the last auction attempt in May 2010 failed due to a lack of bidders. The government had set a minimum price of 513mn reais for the auction, which also saw bids from federally controlled Banco do Brasil ( BB), Santander Brasil (NYSE: BSBR) and Itaú Unibanco (NYSE: UTB). Government officials called the auction a "victory" for the state due to interest from the country's largest banks and the fact that the winning bid was almost double the minimum price. In total, Bradesco will pay the Rio state government 1.8bn reais for the bank and the right to handle the payroll and pension payments of the state's public servants for three years. That contract starts in January next year and will add close to 430,000 clients to Bradesco. Berj is the result of a 1997 privatization, in which Banco Itaú - now part of Itaú Unibanco - incorporated one part of state bank Banerj, while the state government held onto the remaining assets, which came to be known as Berj.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Brazil)
Why Brazil’s central bank may step on the rate-cutting brakes
Analysts tell BNamericas that the central bank faces several obstacles in terms of room for large rate cuts.
What’s behind the Petrobras political crisis?
Discord has been made evident by public clashes between the state-run firm’s CEO and the country’s energy minister.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Caracollo - Colomi double lane: Section 2B Confital - Bombeo
- Current stage:
- Updated:
7 hours ago
- Project: Tailings Disposal Structures 9 (EDR9)
- Current stage:
- Updated:
13 hours ago
- Project: New Arauco hospital
- Current stage:
- Updated:
7 hours ago
- Project: Above Rocks
- Current stage:
- Updated:
7 hours ago
- Project: ERNC Loa project
- Current stage:
- Updated:
12 hours ago
- Project: Cordillera Province Hospital Construction
- Current stage:
- Updated:
1 day ago
- Project: Asa Branca II offshore wind farm
- Current stage:
- Updated:
7 hours ago
- Project: Barrancas del Cobre Airport
- Current stage:
- Updated:
7 hours ago
- Project: Caribbean Regional Train
- Current stage:
- Updated:
1 day ago
- Project: Andrómeda Data Center
- Current stage:
- Updated:
7 hours ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Renergetica Chile S.p.A.
- Company: Centro Nacional de Despacho  (CND)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Pyxis Ingeniería SPA  (Pyxis Ingeniería)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Gobierno de Nezahualcóyotl
- Company: Gobierno de Chimalhuacán
- Company: Appia Rare Earths & Uranium Corp.
- Company: Predator Oil & Gas Holdings Plc
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Ingeniería de Proyecto y Supervisión S.A. de C.V.  (INPROS)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...