SAO PAULO, May 12 (Reuters) - Itaú Unibanco Holding SA, Brazil's largest bank, will boost its market share in asset management and fee income over the next years through the acquisition of a stake in online broker XP Investimentos, Chief Executive Officer Candido Bracher said on Friday.
Bracher confirmed that the deal announced late on Thursday meant XP Investimentos has scrapped plans for an initial public offering in the short term.
Itaú agreed to buy 49.9 percent of XP for 6.3 billion reais ($2 billion), allowing XP to be run independently for at least seven years. Under terms of the transaction, Itaú will acquire additional stakes and have options to get full control between 2024 and 2033.
$1 = 3.12 reais Reporting by Aluisio Pereira; Writing by Tatiana Bautzer; Editing by Dan Grebler