By Dow Jones Business News,
December 23, 2013, 10:23:00 AM EDT
By Rogerio Jelmayer
SAO PAULO--Brazilian bank Itau Unibanco Holding S.A. (ITUB, ITUB3.BR, ITUB4.BR) and Chilean retailer Cencosud SA
(CNCO, CENCOSUD, SN) have failed to strike a deal to jointly develop store-card businesses in Chile and Argentina, the
Chilean company said in a statement Monday.
In June, Itau had struck a preliminary deal to buy a stake in Cencosud's credit-card operations and provide funding.
The deadline for reaching a definitive agreement expired on Dec. 21, Cencosud said.
Itau had been planning to buy a 51% stake in Cencosud's credit-card operator in Chile and Argentina for $307 million
and the Brazilian bank also would fund the credit-card portfolio in both countries, which had an outstanding portfolio
worth $1.3 billion.
Cencosud has supermarkets, department stores, shopping malls and home-improvement stores spread throughout Brazil,
Chile, Argentina, Peru and Colombia. The company, controlled by chairman and founder Horst Paulmann, is South America's
largest retailer by sales.
The talks collapsed as Itau continues to pursue a stake in CorpBanca SA (BCA, CORPBANCA.SN), Chile's fifth-largest
bank by assets, although so far no deal has been reached.
Write to Rogerio Jelmayer at email@example.com
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