Portuguese, Arabs and Brazilians compete for Caixa in Brazil

This Thursday, it has been given another important step in the process of selling Caixa Geral de Depósitos (CGD) in Brazil. The Portuguese government approved a shortlist of candidates, who have been successful in their proposals, during the last cabinet meeting. To what ECO had access, three financial institutions are competing for taking control of the Brazilian CGD: the Luso-Brasileiro Bank (held by Amorim Group), the ABC Brazil Bank and the Artesia Fund.

“It has been approved a resolution that selects the potential investors admitted to participating in a subsequent phase of the process of alienation of shares directly and indirectly held by CGD in Banco Caixa Geral’s share capital in Brazil”, a cabinet’s communique informs.

“The selected investors will be invited to initiate diligences and to present binding proposals for the acquisition of those shares”, the Portuguese government adds, stressing that “another strategic step takes place in the calendar of the recapitalisation of Caixa”.

Last February, Paulo Macedo, CGD’s CEO, revealed that about 115 institutions were interested in buying Banco Caixa Geral. However, that number got shortlisted to just 3.

As ECO was able to confirm, the Luso-Brasileiro Bank is among the final contesters. The bank is 43% held by Amorim Group, which is the same share as Ruas Group (a well-known Brazilian holding of automotive commercialisation). The remaining 14% of the share capital of the Bank belongs to the family that founded it, the Tavares de Almeida. The Luso-Brasileiro Bank registered a profit of 5.3M euros last year.

In the competition, there is also the ABC Brazil Bank, 60% held by the Arabian ABC Bank, which has profited 100M euros last year. The other candidate to take control of Caixa in Brazil is Artesia Fund.

The alienation process in Spain and South Africa are in a more advanced stage, though. As ECO published in exclusive this Thursday, the Spanish branch of CGD will be sold to Abanca and the South African Mercantile Bank to Capitec Bank until the end of September, despite needing first the approval of both countries’ Financial Authorities. If successful, Caixa Geral de Depósitos might be able to increase its semester’s profit to 157M euros.

Another sale is ongoing: the Banco Comercial Atlântico. Caixa holds 59% of it. Arabian IIB Holdings, which has acquired the Portuguese Efisa Bank for 27M euros, has shown interest in acquiring the Cape Verdian Bank.