Bank of Communications has agreed to buy 80% of Banco BBM in an all-cash deal, its first overseas acquisition.
The deal announced late Tuesday coincided with Li Keqiang’s visit to Brazil the first stop in the Chinese premier's four-nation South America tour. Li’s visit also precipitated trade agreements with Brazil worth $27 billion. China has been Brazil's largest trading partner since 2009 and Brazil is also China's largest trading partner in Latin America.
The deal will help BoCom expand its businesses in the Brazilian market, and facilitate investment and trading activities between China and Brazil, the Shanghai-headquartered bank said in a statement.