Business

Broker XP eyes Credit Suisse's Brazil unit - sources

Credit Suisse Group denied on Friday a Brazil Journal report that it had received an approach to sell its Brazilian subsidiary

Photo: REUTERS/Stefano Rellandini
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  • In a statement released by the Brazilian operation of Credit Suisse, the Swiss bank “categorically denied” it was talking to any group about the matter;
  • Considerations are in very early stages, they said.

Brazilian broker XP is interested in acquiring the Brazilian subsidiary of Credit Suisse, two sources familiar with the matter said on Friday.

Considerations are in very early stages, they said. One of the sources said it was clear the Swiss bank was not interested in selling the unit, at least for the time being.

In a statement released by the Brazilian operation of Credit Suisse, the Swiss bank “categorically denied” it was talking to any group about the matter. XP declined to comment.

Considerations are in very early stages, they said. One of the sources said it was clear the Swiss bank was not interested in selling the unit, at least for the time being.

In a statement released by the Brazilian operation of Credit Suisse, the Swiss bank “categorically denied” it was talking to any group about the matter. XP declined to comment.

READ ALSO: With profits more than doubling in the first quarter of 2021, XP speeds up its banking initiative

A deal could double XP’s asset management business. With 109 billion reais ($20.9 billion) under management in Brazil, Credit Suisse is the country’s 14th-largest asset manager, according to industry group Anbima. XP has 105 billion reais in its funds.

Shares of XP on the Nasdaq rose more than 5% on the news of the broker’s interest, first reported by business news website Brazil Journal.

READ ALSO: XP closes BRL 1.2 billion funds to finance startups and unlisted companies in Brazil

One of the sources said a potential deal could include both shares and cash.

Credit Suisse is reeling from its exposure to the collapse first of Greensill Capital and then Archegos Capital Management.

Reuters reported in April that BlackRock and Jean-Pierre Mustier‘s blank-check firm are among the investors expressing interest in Credit Suisse’s asset-management arm.

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