ABN Amro Set to Take Over Banco Real

ABN Amro Holding, Europe’s eighth-biggest financial company, said it would take over Brazil’s Banco Real in a transaction that could cost $3 billion, the biggest bank acquisition in Latin America. ABN Amro agreed to make an initial cash payment of $2.1 billion to the controlling shareholder in exchange for 40% of the voting rights. It plans to buy the rest of the company from other shareholders in the next few years. The purchase gives the Dutch bank control of Brazil’s fourth-biggest financial company and more than triples its assets in Brazil. ABN Amro follows other banks, such as HSBC Holdings, which bought control of Banco Bamerindus do Brasil for almost $1.4 billion, into a potentially fast-growing Brazil, the biggest economy in Latin America, as it looks to counteract slow lending growth at home and seeks to complement its U.S. operations. The transaction is subject to a due-diligence investigation and approval from Dutch and Brazilian authorities.