Brazil Property News: Brazil merger marks birth of world's third-biggest exchange




9th May 2008 05:30


Two of the biggest financial exchanges in Brazil have agreed a merger plan which will see the country become home to the world's third biggest trading centre.

Reuters reports that Bovespa and BM&F shook hands on a partnership on Thursday, and have already put a board together to help run the new venture.

Both firms expect to cut their costs by around a quarter by 2010 through the deal, according to the news provider.

"The new entity said in a statement its stocks will be listed on Brazil's New Market after the CVM securities regulator registers the BM&F Bovespa," it stated.

Stocks for both companies rose by over two per cent after the deal was announced.

Recent reports revealed that Brazil has issued $500 million (£250 million) of its national treasury securities on the European, United States and Asian markets.

Investors thinking of taking a chance on Brazil property could be encouraged by the apparent strengthening in the country's economy, with external investment rates also expected to go up.

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