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HSBC Brazil signs agreement to acquire consumer finance operations of Indusval
19 August 2004
HSBC Bank Brasil S.A. has entered into an agreement to acquire the consumer finance operations of Indusval Multistock Group, which were formerly known as Maxima, for a total consideration of BRL371 million (approximately US$124 million) subject to final adjustments at closing. This includes the purchase of Indusval’s consumer finance sales promotion company (‘Valeu Promotora de Vendas’), its securitisation subsidiary and consumer finance loans amounting to approximately BRL253 million.
Completion of the transaction, which will be funded from internal resources, is subject to conditions including regulatory approvals.
Indusval’s consumer finance business in Brazil operates in two main areas – store loans through some 3,250 retailers and personal loans through its own network of 61 branches and 1.1 million active customers.
Emilson Alonso, CEO of HSBC Bank Brasil, said: “This transaction reaffirms HSBC’s strong commitment to Brazil and to consumer finance. It will help us grow our share of the country’s consumer finance market where we already have a leading position through our acquisition of the Losango consumer finance business in 2003.”
Manoel Felix Cintra Neto, president of Indusval Multistock, said: "We are happy to have built up such a successful business that will enhance HSBC’s presence in Brazil. This transaction will allow us to focus our efforts in the middle market segment, including possible acquisitions in order to expand our product scope."
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