HSBC Brazil is the Brazilian arm of the multinational financial firm based in Asia. In 2015, the president of Bradesco Bank, Luiz Carlos Trabuco Cappi, decided to offer HSBC Brazil a contract that would enable them to become a subsidiary of Bradesco Bank. HSBC Brazil and Bradesco Bank negotiated for months, and both parties are looking forward to a positive result of the planned merger.
The reason why Bradesco Bank wanted to acquire HSBC Brazil is for them to gain more investors and assets. HSBC Brazil holds a lot of investors, and they also have a considerable amount of assets within the company. Bradesco Bank wanted to merge with HSBC Brazil so that they could regain their designation back, as the largest and the leading bank in the country. This distinction was awarded to their rival, Itau Unibanco, which was a merger of Banco Itau and Unibanco. The two closest competitors of Bradesco Bank merged in 2009, and it generated a lot of profit for the two companies. Investors flocked in, and their assets started to grow. According to folha.uol.com.br Bradesco Bank noticed that after their rivals merged, their investors began to lose one after another, and their value at the stock market plummeted, causing their clients to move their assets away from the bank.
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When Luiz Carlos Trabuco Cappi took charge in 2009 as CEO, he brainstormed several ideas with his colleagues on how to bring Bradesco Bank on top. After several consultations and meetings, they came up with a plan to acquire the largest financial institutions in the country to increase their value. HSBC Brazil was the top priority of Luiz Carlos Trabuco Cappi, and he spent a lot of time creating the draft that would signal the merger of the two entities. In the end, the bank expert has to offer HSBC Brazil $5.2 billion for the acquisition, which is the largest in the history of business in Brazil. The executives at HSBC Brazil accepted the deal, and they became an official subsidiary of Bradesco Bank.
The transaction made news all over the country, and experts have seen a bright future ahead after the merger. Investors came back to Bradesco Bank, and their assets grew in a short period. The shares being traded at the stock market under the ticker symbol of Bradesco Bank also experienced a sudden change, as its value rose significantly. In the end, the board of directors back at Bradesco Bank thanked Luiz Carlos Trabuco Cappi for his brilliant idea that placed them back on track.
Check more about Luiz Carlos Trabuco Cappi: http://economia.estadao.com.br/noticias/geral,bradesco-anuncia-substituto-de-luiz-trabuco-na-presidencia-do-banco,70002178384