Shearman & Sterling represented Bank of Communications Co., Ltd. (BoCom), one of the five largest banks in China, in the closing of its acquisition of approximately 80% of the total outstanding shares of Brazil’s Banco BBM S.A. (BBM Bank). The transaction was completed on November 30, 2016, and BBM Bank has become a non-wholly owned subsidiary of BoCom.
The deal represents BoCom’s first overseas acquisition in its 108th year and also signifies BoCom’s first step in expanding its reach into Latin America, particularly the Brazilian market, to better serve the investment and trading activities between China and Brazil.
Dual-listed on both the Shanghai and Hong Kong stock exchanges, BoCom’s key business areas include commercial banking, securities services, trust services, financial leasing, fund management, insurance and offshore financial services.
BBM Bank is one of the oldest financial institutions in Brazil. Headquartered in Rio de Janeiro with outlets in both São Paulo and Salvador, BBM’s principal businesses include corporate credit, private banking and treasury businesses.