Itau Unibanco (ITUB) Announces Merger Proposal With Hipercard

Core Viewpoint - Itaú Unibanco Holding S.A. is undergoing a corporate restructuring plan that includes the merger of its subsidiary Hipercard Banco Múltiplo S.A. to enhance efficiency and reduce costs [1][2][3]. Group 1: Merger Details - The merger will involve transferring all activities managed by Hipercard to Itaú Unibanco, aiming for greater synergy within the conglomerate [2]. - The estimated cost for executing the merger is approximately R$180,000 ($34,843) [1]. - Following the merger, Hipercard will be dissolved, and its assets, valued at R$2.68 billion ($518 million), will be taken over by Itaú Unibanco [3][4]. Group 2: Financial Impact - The merger will not lead to an increase in capital or the issuance of new shares for Itaú Unibanco, and there will be no exchange ratio or withdrawal rights for dissenting shareholders [4]. - Overall, the transaction is expected to have no financial impact on Itaú Unibanco [4]. Group 3: Market Position and Performance - This strategic move is indicative of Itaú Unibanco's adaptability to market trends and aims to strengthen its competitive position [5]. - Over the past six months, Itaú Unibanco's shares have decreased by 3.1%, contrasting with the industry's growth of 14.4% [5].