(Reuters) -JPMorgan Chase & Co has acquired a 40% stake in Brazilian digital bank C6 Bank, the companies said on Monday, marking the debut in retail of the U.S. bank in Latin America’s biggest economy.
JPMorgan has concentrated its activity in Brazil in corporate lending and investment banking.
Founded in 2019 by former partners of Latin America’s largest independent investment bank, Banco BTG Pactual SA, C6 has 7 million clients, according to a statement.
C6 reached a valuation of 11.3 billion reais ($2.28 billion) in December, when it raised 1.3 billion reais from 40 individuals and families.
“Partnering with JPMorgan Chase, a global leader in financial services and a trusted name in retail banking, is a game changer,” said Marcelo Kalim, CEO and co-founder of C6 Bank.
The acquisition value and C6 valuation have not been disclosed. C6 posted a net loss of 607 million reais in 2020, ending the year with 8 billion reais in assets.
In a joint statement, JPMorgan and C6 highlighted Brazil regulatory reform, which has fostered competition and allowed digital banks to gain market share. Earlier this month, Warren Buffett’s Berkshire Hathaway Inc invested $500 million in Nubank at a valuation of $30 billion.
($1 = 4.9532 reais)
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