Banco Macro confirms conversation to buy the Argentine subsidiary of Itaú

The Argentine Banco Macro confirmed on Tuesday that it is holding talks with the Itaú Unibanco for a potential purchase of the businesses in Argentina of the Brazilian financial entity.

In a statement sent to the markets, Macro Bank said “permanently analyzes different business possibilities” and that, in that context, “holds talks with Banco Itaú Unibanco about a potential operation”.

“Likewise, it is reported that to date no binding act has been entered into in relation to this possibility.”, added Banco Macro, one of the main entities operating in the Argentine financial system.

After disseminating this statement, Macro’s shares rose 12.64% on the Buenos Aires Stock Exchange.

The conversations were also confirmed by Itaú, the largest private bank in Brazil and the main financial entity in South America, in a statement sent to the markets in Brazil and Argentina.

Banco Macro, whose shares are also listed on the New York Stock Exchange, has a network of 500 customer service points in Argentina and employs 8,706 people.

Itaú Unibanco entered Argentina in 1979 and consolidated as a wholesale bank branch, until it began retail operations in the mid-1990s and opened its first branch in October 1995.

In 1998, the bank acquired Banco del Buen Ayre and in 2008 changed its name to Banco Itaú Argentina.

Currently, it operates in seven provinces of Argentina, with 67 branches and a staff of 1,500 employees.

According to a rating report released by Moody’s Local last April, Itaú Argentina has assets of 399,277 million pesos (US$1,581 million or 1,472 million euros), with a net worth of 54,919 million pesos (US$217.5 millions).

According to that same report, Itaú’s Argentine subsidiary ranks as Argentina’s 13th largest private bank in terms of deposits and 11th in loans, with a market share of 1.3% and 1.2%, respectively.

Source: EFE