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UPDATE 1-Brazilian regulator recommends conditional approval of Itaú-XP deal

From Reuters - December 27, 2017

SAO PAULO (Reuters) - A unit of Brazils antitrust watchdog has recommended the conditional approval of Brazilian bank Ita Unibanco Holding SAs (ITUB4.SA) purchase of a stake in financial services firm XP Investimentos SA, according to a statement issued on Wednesday.

According to the statement, the superintendent of competition regulator Cade has recommended that the watchdog approve the deal given that the parties comply with terms that they have negotiated with authorities.

As part of that accord, Itas influence on XPs commercial decisions will be limited and the parties are theoretically barred from abusing their market position with counterparties, among other measures.

Thus, not only were accords negotiated that limit the influence of Ita over XPs commercial decisions, but the parties are committing to adopting practices in relation to their commercial partners ... that facilitate the access of competitors, the superintendent said.

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