CCB out to buy Brazilian bank

Is currently in talks with Banco Industrial e Comercial SA.

Sources said Banco Industrial e Comercial SA or BicBanco is among 20 firms China Construction Bank Corporation is looking to acquire. BicBanco has a market value of US$776 million; holds US$7.3 billion in assets and is controlled by the Bezerra de Menezes family.

BicBanco said is has been in talks to sell their stake but that no agreement has been achieved so far without any binding documents signed or even any confirmation that the sale of control of the company will be held. CCB has been in talks to buy a Brazilian bank for over a year. It looks to take advantage of the growing ties between Chinese companies and Latin America.

Brazil's banking system is dominated by five major banks, but there are around 170 small and mid-sized banks with some US$97 billion in outstanding loans. The assets in Brazil's financial system were worth US$2.4 trillion at the end of the first quarter.