World Economy

Shanghai Co. Eyes Brazil Bank

Shanghai Co. Eyes Brazil BankShanghai Co. Eyes Brazil Bank

Shanghai Pengxin Group Co is in talks to buy control of Brazilian mid-sized lender Banco Indusval & Partners SA, as the Chinese conglomerate wants to expand beyond commodities in Latin America’s largest economy, three sources with direct knowledge of the matter said, Reuters reported. Representatives of Pengxin and partners of BI&P, as the specialist in agricultural lending is known, have discussed tie-up scenarios, two of the sources said. Pengxin’s search for financial, logistics and commodities firms in Brazil is gaining steam following the $200 million purchase in April of a controlling stake in grain processor Fiagril Participacoes SA. The Chinese group could spend up to $3 billion in Brazilian targets, sources told Reuters.