Economy

XP buys Banco Modal for BRL 3 billion

by

XP announced this Friday (7) an agreement to buy Banco Modal. The acquisition will be paid for through the issuance of up to 19.5 million new XP shares, representing 35% of the bank’s price in the last 30 days.

Based on the closing of US$ 27.09 (R$ 154.51) on Thursday (6), the volume of the operation should be around US$ 528.2 million (R$ 3.01 billion).

​Up to 100% of Modal will be merged into a subsidiary of XP — if the bank fails to obtain the necessary approvals from minority shareholders, the equivalent of 55.7% will be acquired from the controlling shareholders.

​According to the statement, in September last year the two companies together had 3.8 million active customers, in contrast to the 457 million of the five largest Brazilian banks.

“XP Inc. and Banco Modal, which together still represent a small fraction of the market in which they operate, will accelerate the process of disruption that has been happening in the financial industry in Brazil, characterized by high growth potential and few dominant players” , says the text.

The statement also maintains that Banco Modal will benefit from XP’s infrastructure and knowledge, but will remain “independent and segregated”.

“Without a doubt, our union with Modal will allow us to gain even more competitiveness in the dispute against traditional banks”, says in the note the executive president of XP, Thiago Maffra.

.

Bankbusinessfinancial marketleafXP Investimentos

You May Also Like

Recommended for you