Feb. 28 (Bloomberg) -- Banco Davivienda SA, Colombia’s third-biggest bank, agreed to buy Corredores Asociados SA, the Andean nation’s biggest independent brokerage, gaining a bigger fund management stake and an investment banking business.
Davivienda will pay 120 billion pesos ($66 million) for the company, plus an additional amount that will depend on the brokerage’s profit, Davivienda Chief Executive Officer Efrain Forero told reporters in Bogota.
Mauricio Botero, one of Corredores Asociados’ founders and shareholders, said there is a “consolidation trend” among Colombian brokerages and that he sold his stake to prevent the company from shrinking or vanishing.
“We sold 100 percent because the market is showing us that there’s no space for small players,” Botero told reporters in Bogota. “Brokerages that don’t form alliances will tend to disappear.”
Davivienda won’t merge Corredores Asociados with its own brokerage for at least a year, Forero said. The deal, which also includes Corredores Asociados’ Panama unit, is subject to approval by regulators, he said.
Forero said Davivienda has enough cash to pay for the acquisition.
To contact the reporter on this story: Christine Jenkins in Bogota at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org