Itau Unibanco (ITUB) to Sell Shares in BIA to Marco for R$250M
Itau Unibanco Holding S.A. ITUB entered a binding agreement with Banco Macro ("Macro") for the sale of all its shares held in Banco Itaú Argentina S.A. and its subsidiaries ("BIA") for an approximate amount of R$250 million. This amount will be adjusted based on BIA's net result from April 1, 2023, to the date the deal is closed.
The agreement requires ITUB to meet certain precedent conditions and obtain required regulatory approvals in Argentina before it can sell BIA and its subsidiaries to Macro.
When the deal is closed, it will result in the recognition of a negative effect of about R$1.2 billion on Itaú Unibanco's result. The impact is not recurring. Also, the deal will not have a significant impact on its common equity tier 1 capital.
Itaú Unibanco will continue serving its local and regional corporate clients, wealth segment clients and private banking segment clients through its units abroad. It will also request for approval from regulators in Argentina and Brazil to open an office in Argentina. The office will carry on activities that its license and the agreement will permit.
Apart from this, ITUB is focused on its strategy to expand operations in Brazil and abroad. In April 2022, the company acquired an 11.4% equity stake in XP Inc. for R$8 billion. In January 2022, it inked a deal to acquire Ideal Holding to bolster its investment ecosystem and completed the first phase of the deal on Mar 31, 2023.
It is also striving to create an ecosystem of partnerships to meet the needs of its customers. Such inorganic efforts are expected to support the company’s top line in the upcoming quarters.
ITUB’s shares have gained 14.9% on the NYSE over the past six months compared with the industry’s growth of 0.1%.
Image Source: Zacks Investment Research
Currently, ITUB carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Efforts by Other Firms
Last month, LPL Financial Holdings LPLA announced a definitive agreement to acquire the wealth management business of Crown Capital Securities, L.P. The deal marked a significant step for both companies and is expected to be finalized in early 2024, pending regulatory approval and customary closing conditions.
LPLA's industry-leading platform is expected to provide Crown Capital advisors with enhanced operational support, streamlined processes and access to cutting-edge technology and integrated advisor tools. While Crown Capital advisors will enjoy the benefits of LPL Financial's robust infrastructure, they will maintain their independence, continuing to serve clients with same dedication and commitment they have exhibited throughout the years.
NBT Bancorp Inc. NBTB completed its previously announced deal to acquire Salisbury Bancorp, Inc on Aug 11. The deal, announced in December 2022, was valued at $204 million.
Under the terms of the agreement, the holders of Salisbury common stock received 0.7450 shares of NBT common stock, which equates to a value of $35 per Salisbury share.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Itau Unibanco Holding S.A. (ITUB) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
NBT Bancorp Inc. (NBTB) : Free Stock Analysis Report
