The Administrative Council for Economic Defence (CADE) has approved Banco Bradesco's acquisition of HSBC Brazil, but with restrictions. In a statement released on Wednesday, the CADE said it had "approved" the deal in order to protect Brazilian taxpayers from any potential losses due to tax evasion and money laundering. Bradesco's agreement to buy HSBC's Brazil unit is its largest acquisition ever, adding 850 branches and $45bn in assets after it lost market share to federally controlled Banco do Brasil and Caixa Economica Federal.
The Administrative Council for Economic Defence (CADE) has approved Banco Bradesco's acquisition of HSBC Brazil, but with restrictions. As we noted in February, HSBC's $5.2bn sale of its Brazil unit to Banco Bradesco was being probed deeper by the Brazil's antitrust regulator, Cade, as it was investigating the effects the deal could have on competition in the banking industry. Bradesco's agreement to buy HSBC's Brazil unit is its largest acquisition ever, adding 850 branches and $45bn in assets after it lost market share to federally controlled Banco do Brasil and Caixa Economica Federal.