XP said to be interested in Credit Suisse unit in Brazil

RIO DE JANEIRO, BRAZIL – XP Inc. is interested in buying the Brazilian unit of Credit Suisse bank, two sources close to the matter said.

The sources added that analyses are in early stages. One of the sources said it was clear that the Swiss bank has no interest in selling the unit, at least for now.

In a note released by Credit Suisse in Brazil, the Swiss bank “categorically denied” that it is talking to any group about the subject. XP did not want to comment.

A potential deal would double the size of XP in the asset management area and give access to wealthier clients.

With R$109 (US$20.8) billion under management, Credit Suisse is Brazil’s 14th largest asset manager, according to ANBIMA (Brazilian Financial and Capital Markets Association). XP is a little behind, with R$105 billion.

XP shares on Nasdaq rose nearly 6% after news of interest in Credit Suisse in Brazil. At around 2:35 PM on Friday, May 7, they were up 5.5%.

One of the sources said that a possible deal may include shares and cash as a form of payment.

Credit Suisse is recovering from its exposure to the collapse of Greensill Capital and Archegos Capital Management.

BlackRock and Jean-Pierre Mustier’s SPAC are among the investors expressing interest in Credit Suisse’s management unit.

Last year, Credit Suisse in Brazil signed a deal with Modal Bank to acquire up to 35% of the total equity stake in modalmais digital bank, which debuted on the São Paulo stock exchange in late April and is an XP rival.

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