Spain-Largest private bank in South America opens.

BRAZIL.

LARGEST PRIVATE BANK IN SOUTH AMERICA.

The global crisis has helped create the largest private bank in Latin America, Brazilian bank shares soared on the news that Banco Itau, had purchased the third largest bank in Brazil Unibanco Holdings.

The transaction will create the biggest private bank in the region, the deal was valued at US$12.5 billion.

The new company, will have 4,800 branches mainly in Argentina and Brazil, the deal comes after 15 months of negotiation which was accelerated by the recent global financial crisis.

The joint banks will hold US$265 billion in assets, Banco Itau will hold 66% of the shares in the new company.

This operation may signal more consolidation of financial institutions in the region.

Itau Chief Executive Roberto Egydio Setubal, will be the new CEO.

Pedro Moreira Salles, the CEO of Unibanco, will be the new company chairman.

Setbul said at a press conference, "when Santandor bought Banco Real last year, Brazils financial sector got a new kind of player and a new level of competition that we had never seen before.

Suddenly foreigners had a bigger scale than the locals. We knew that we needed to do something if we wanted to compete and grow".

Brazilian Finance Minister, Guido Mantega said, "the combination of the two banks will strengthen the counties financial system and spur lending".