Brazilian private-sector lender Banco Bradesco has started exclusive talks to buy HSBC Bank Brasil Banco Múltiplo, the Brazilian unit of HSBC Holdings.
Should HSBC accept the offer from Bradesco, a deal could be announced before the end of July 2015, Reuters reported citing unnamed sources.
The bid values the unit at around BRL12bn ($3.75bn), which is 1.2 times the book value of the unit. Details have not yet emerged on whether Bradesco intends to pay in cash for the acquisition.
HSBC CEO Stuart Gulliver announced plans to sell its Brazil operations in May, as part of its strategy to simplify its structure and sharpen focus on core business. The unit managed assets worth nearly BRL170bn at the end of March.