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Brazilian Banks Beat Wall Street as Itau Shows Who Rules

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Gerdau SA, the largest steel producer in the Americas, chose three Brazilian banks to manage a $3.5 billion share sale last month. U.S. firms JPMorgan Chase & Co. and Citigroup Inc., which led previous deals for the company, weren’t in the mix.

When Magazine Luiza SA, an electronics and furniture retailer, held an initial public offering in April that raised $586.7 million, it asked Banco Itau BBA SA, the investment-banking unit of Brazil’s largest lender, to lead the deal. Foreign banks weren’t invited.