Brazil's CEF Strengthens Presence In Card Industry
2010年9月8日 - 9:05PM
Dow Jones News
Brazilian state-run bank Caixa Economica Federal has entered
partnerships with the two largest local credit-card-networking
companies, Cielo SA (CIEL3.BR, CIOXY) and Redecard S.A (RDCD3.BR),
in an effort to strengthen its presence in the local card
industry.
Cielo late Tuesday announced the five-year agreement with CEF to
process credit-card transactions under Cielo's brand.
CEF reached a similar agreement with Cielo's rival, Redecard,
earlier this week.
The deals were part of CEF's strategy to reinforce its presence
in the card industry.
Earlier this year, CEF, the state-run bank Banco do Brasil SA
(BBAS3.BR, BDORY) and private bank Banco Bradesco SA (BBD,
BBDC4.BR) signed a memorandum of understanding to jointly operate a
recently created credit-card company called ELO.
ELO was founded earlier this year by Banco do Brasil and
Bradesco, the country's second-largest private bank in terms of
assets, to compete with Visa Inc. (V) and Mastercard Inc. (MA)
locally.
The three banks will take equal stakes in the card brand.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071;
rogerio.jelmayer@dowjones.com