April 8, 2016 / 9:52 PM / 2 years ago

Brazil's BM&FBovespa buys Cetip, creates Latin America largest bourse

SAO PAULO, April 8 (Reuters) - BM&FBovespa SA, Latin America’s largest financial bourse, will buy rival Cetip SA Mercados Organizados, creating a giant with a market value of over $11 billion and growing regional presence spanning from Mexico to Chile.

Under terms of a revamped, unsolicited offer unveiled on Friday, BM&FBovespa agreed to pay Cetip shareholders 30.75 reais in cash and the equivalent of 0.8991 share of the São Paulo-based exchange, the companies said in a joint statement. The estimated value per share of Cetip would be around 45 reais, based on BM&FBovespa’s Friday closing price, according to Thomson Reuters calculations.

Reuters reported on Wednesday, citing a source with direct knowledge of the matter, that Cetip has agreed to most terms of the offer. The boards of both companies were expected to give their blessing to the deal “within 48 hours,” said the source. (Reporting by Guillermo Parra-Bernal; Editing by Dan Grebler)

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