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Itau Unibanco (ITUB) Acquires 11.4% of XP, Stock Up 2.6%
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Itaú Unibanco Holding S.A (ITUB - Free Report) announced on Apr 29, 2022, the completion of its acquisition of 11.36% equity interest in the total capital of XP Inc. for a deal value of R$ 8 billion. The transaction has likely led to a 2.6% increase in the share price of ITUB since the announcement.
The acquisition of XP is not expected to have any material impact on Itaú Unibanco’s current fiscal year results. Further, there will be no change in the corporate governance of XP as a result of the acquisition. ITUB had received approval from Central Bank of Brazil to acquire the minority interest in XP Inc. earlier in November 2021.
ITUB is focused on its strategy to expand operations in Brazil and beyond through its inorganic moves. In mid-April 2022, the company announced its plan to acquire 12.82% of the total capital of Rede Agro Fidelidade e Intermediação S.A. (Orbia). The transaction is subject to approval from the Brazilian antitrust agency and the Central Bank of Brazil.
Orbia provides rural producers with a digital experience in marketing their commodities. It is currently the largest agribusiness marketplace in Brazil. Orbia eases the way its customers and partners do business by connecting different products and services on one and the same platform, easily accessible by rural producers.
This transaction will enable Itaú Unibanco to expand operations in agribusiness and provide Orbia's customer base with more effective credit access solutions.
In January 2022, ITUB inked a deal to acquire Ideal Holding to bolster its investment ecosystem. In March 2020, it acquired Zup IT Servicos, aiding the development of digital transformation projects, and offering new functionalities and digital products to its customers. Therefore, via such inorganic efforts to diversify its product mix and footprints, ITUB’s top line is expected to grow in the upcoming quarters.
Over the past six months, shares of ITUB have rallied 16% on the NYSE against the 8.7% decline of the industry.
Image Source: Zacks Investment Research
Itaú Unibanco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Moves by Other Finance Companies
First Horizon Corporation (FHN - Free Report) and TD Bank Group (TD - Free Report) signed a definitive agreement, wherein TD will acquire FHN in an all-cash deal valued at $13.4 billion or $25 for each FHN common share.
TD anticipates the FHN acquisition to close by Nov 1, 2022.
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Itau Unibanco (ITUB) Acquires 11.4% of XP, Stock Up 2.6%
Itaú Unibanco Holding S.A (ITUB - Free Report) announced on Apr 29, 2022, the completion of its acquisition of 11.36% equity interest in the total capital of XP Inc. for a deal value of R$ 8 billion. The transaction has likely led to a 2.6% increase in the share price of ITUB since the announcement.
The acquisition of XP is not expected to have any material impact on Itaú Unibanco’s current fiscal year results. Further, there will be no change in the corporate governance of XP as a result of the acquisition. ITUB had received approval from Central Bank of Brazil to acquire the minority interest in XP Inc. earlier in November 2021.
ITUB is focused on its strategy to expand operations in Brazil and beyond through its inorganic moves. In mid-April 2022, the company announced its plan to acquire 12.82% of the total capital of Rede Agro Fidelidade e Intermediação S.A. (Orbia). The transaction is subject to approval from the Brazilian antitrust agency and the Central Bank of Brazil.
Orbia provides rural producers with a digital experience in marketing their commodities. It is currently the largest agribusiness marketplace in Brazil. Orbia eases the way its customers and partners do business by connecting different products and services on one and the same platform, easily accessible by rural producers.
This transaction will enable Itaú Unibanco to expand operations in agribusiness and provide Orbia's customer base with more effective credit access solutions.
In January 2022, ITUB inked a deal to acquire Ideal Holding to bolster its investment ecosystem. In March 2020, it acquired Zup IT Servicos, aiding the development of digital transformation projects, and offering new functionalities and digital products to its customers. Therefore, via such inorganic efforts to diversify its product mix and footprints, ITUB’s top line is expected to grow in the upcoming quarters.
Over the past six months, shares of ITUB have rallied 16% on the NYSE against the 8.7% decline of the industry.
Image Source: Zacks Investment Research
Itaú Unibanco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Moves by Other Finance Companies
First Horizon Corporation (FHN - Free Report) and TD Bank Group (TD - Free Report) signed a definitive agreement, wherein TD will acquire FHN in an all-cash deal valued at $13.4 billion or $25 for each FHN common share.
TD anticipates the FHN acquisition to close by Nov 1, 2022.