Special Report:Global Financial Crisis
BRASILIA, Nov. 20 (Xinhua) -- The state-owned Bank of Brazil has completed the purchase of regional bank Nossa Caixa for 5.38 billion reais (2.25 billion U.S. dollars), according to a financial report Thursday.
Documents presented by the Bank of Brazil to the Securities Commission say the deal includes 71.25 percent of Nossa Caixa's capital, which is now under the control of the state-owned bank.
The Bank of Brazil also plans to negotiate the purchase of the Regional Bank of Brasilia and half of the bank Votorantim.
If these deals are reached, the Bank of Brazil will again be the biggest financial institution in Brazil, a position it lost after the November merger of Itau and Unibanc.
Henrique Meirelles, president of the Central Bank of Brazil, told the press that the Bank of Brazil acquisition will contribute to the national financial system during the current international economic environment.
Brazilian Finance Minister Guido Mantega also hailed the purchase, saying "it is good because it can balance the game between the large Brazilian banks and raise their competitions."
Bank of Brazil registered a profit of 1.86 billion reais (about781 million U.S. dollars) during the third quarter of this year, up 36.9 percent compared with the same period past year.
Nossa Caixa gained 69.8 million reais (29.2 million U.S. dollars) during the third quarter, while in the same period in 2007, it lost 67.9 million reais (28.4 million U.S. dollars).
