SAO PAULO: Banco do Brasil Spanish, the nation’s largest bank by assets, said on it received approval from the central bank for a joint venture with card payment processor Cielo Spanish, but it will not be able to book accounting gains from the deal.
Banco do Brasil announced the planned joint venture in November, valued at 11.6 billion reais ($4.3 billion), to run its card business with Cielo. The bank estimated at the time that the deal would add around 3.2 billion reais to its bottom line.
Banco do Brasil shares fell 5.1 percent in Sao Paulo trading, compared with the 2.9 percent drop registered by the benchmark Bovespa stock index.
Brazil’s central bank said there should be no accounting impact from the intangible assets involved in the operation.
Further Banco do Brasil said that the central bank’s ruling had nullified its estimated earnings boost.
