The Shanghai Pengxin Group Co is negotiating the buy a controlling stake in Brazilian bank Indusval & Partners (BI&P) in order to expand beyond the raw materials market in the largest economy in Latin America, reported China Daily.
The newspaper said that representatives of both parties had already met, although it is possible that no agreement will be reached at the end of the meetings.
Indusval & Partners is a bank specialising in lending to agro-livestock enterprises and the Shanghai group’s intention to expand in Brazil comes after it paid US$200 million for a controlling interest in grain processing group Fiagril Participações.
Jair Ribeiro, CEO of BI&P and the bank’s fifth largest shareholder, has already met with representatives of the Shanghai group on two occasions, one in China and one in Brazil.
In a statement to the market, the bank said it was constantly analysing business opportunities and partnerships to “maximise the interests of shareholders” but added that to date there was no firm proposal, document or decision on a sale. (macauhub/BR/CN)