Banco do Brasil, Bradesco To Integrate Some Credit Card Ops

SAO PAULO (Dow Jones)--Brazil's giant banks, the state run Banco do Brasil SA (BBAS3.BR) and private Banco Bradesco (BBD), entered into an agreement to integrate some of its credit card operations, both banks said in a joint statement Tuesday.

The banks said it will create a new brand to offer credit cards for clients. Both banks, however, did not disclose other details of the potential partnership.

The deal comes after both banks announced they will assume the joint control of Cielo SA (CIEL3.BR), a local credit card networking company, acquiring stakes in Cielo from Spanish banking giant Banco Santander SA (STD).

Over the weekend, Banco do Brasil and Bradesco announced they will acquire stakes in Cielo from Spanish banking giant Banco Santander SA (STD). Banco do Brasil said it will acquire a 5.11% stake in Cielo for 1.04 billion Brazilian reals ($590 million), while Bradesco will buy a 2.09% stake for BRL429 million.

After the deal closes, each Brazilian bank will hold a 28.65% stake in Cielo, formerly known as VisaNet.

Santander also agreed to sell the Brazilian banks its 15.33% stake in local credit card company Compania Brasileira de Solucoes e Servicos for BRL200 million.

Banco do Brasil and Bradesco said they are considering forming a holding company in order to control credit card operations along with Cielo's operations.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071; rogerio.jelmayer@dowjones.com

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