June 19 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank, is acquiring Brazilian brokerage Intra SA Corretora de Cambio e Valores to expand in Latin America's largest economy.

The deal, which requires approval by Brazilian regulators, will give the lender access to about 1.2 billion reais ($746.9 million) in client assets and more than 15,000 active accounts, New York-based Citigroup said in an e-mailed statement. Terms weren't disclosed.

``This acquisition fits Citi's strategy to invest in emerging markets, where growth rates are higher,'' Gustavo Marin, chief executive officer of Citigroup's Brazilian unit, said in a Bloomberg Television interview. ``It's a vote of confidence in the Brazilian capital market.''

Citigroup is expanding in an economy that grew 5.4 percent in 2007, the fastest in three years. Controlled inflation enabled the central bank to cut the benchmark interest rate to as low as 11.25 percent in September, encouraging people and companies to borrow record amounts and boosting profit at Brazilian banks. Lending has increased every month since February 2004.

``It's completely in keeping with their view of wanting to be in Brazil, trying to benefit by the growth of individual wealth in Brazil and trying to capture that wealth by owning a brokerage firm,'' said Richard Bove, an analyst at Lutz, Florida-based Ladenburg Thalmann & Co.

Independent Brokerage

Intra was founded in 1977 and is one of the country's three biggest independent equity brokerages, according to the firm's Web site. The deal will give Citigroup access to a market where daily average trading has soared to about $3.65 billion this year from about $569 million 10 years ago, according to data posted in the stock exchange Web site.

``Brokerages have two options: they either become banks or combine with financial groups,'' Marin said. ``The consolidation process should continue,'' he said, adding that Citigroup isn't eyeing any other acquisition target in the country.

In March, Banco Bradesco SA, Brazil's biggest non-state bank by assets, bought the brokerage of Rio de Janeiro-based Agora Holdings SA for 500 million reais.

Citigroup Chief Executive Officer Vikram Pandit is trying to rebuild capital after record losses by selling as much as $400 billion of assets over the next three years. Analysts had speculated the Brazilian retail banking unit might be for sale.

To contact the reporters on this story: Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net

Last Updated: June 19, 2008 18:57 EDT