Brazilian card-payment processor Cielo has started negotiations with federally controlled Banco do Brasil to manage its debit and credit card transactions.

Cielo will pay BRL 9bn (US$3.46bn) to take over the bank’s credit card operations, reported a local magazine Veja, without disclosing its sources.

The agreement will benefit Cielo by diversifying its business and revenue stream, while it will facilitate cash infusion for Banco do Brasil.

According to a filing by Cielo, which is controlled by Banco do Brasil and Banco Bradesco holding 28.65% stake each, the deal will refrain Cielo board directors chosen by Banco do Brasil from voting on the matter.

Third-quarter net income for Banco do Brasil’s card business rose to BRL 512m, up by 50% as against a year before.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.