Brazil's Itau and Unibanco banks announced Monday they were merging "to create the biggest financial group in South America." The new bank, to be called Itau Unibanco, will be among the 20 biggest in the world, they added in the public notification given to stockmarket authorities.
Itau is currently the second largest private-sector bank in Brazil, and Unibanco is ranked fourth. Together, they have assets of 575 billion reais (263 billion dollars) and account for around 20 percent of Brazil's savings accounts and credit. According to Fortune magazine, Itau made two billion dollars in profits last year from 29 billion dollars in revenues and 168.6 billion dollars in assets.
Their union will have "the economic capacity to transform itself into a vital partner for the development of Brazilian companies here and abroad," the banks' joint statement announcing the news said. It stressed that it would have a "strong international presence," notably in the countries in the Mercosur trade bloc which comprises Argentina, Brazil, Paraguay and Uruguay. "The institution will have the necessary agility to increase Brazil's presence on the world stage," it said.