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Brazil economy chief hints at possible Banco do Brasil-Bank of America venture

Brazil's Economy Minister Paulo Guedes again raised the possibility of a venture between state-owned Banco do Brasil SA and U.S.-based Bank of America Corp., Valor Econômico reported.

Guedes mentioned the potential tie-up, without elaborating, during a speech in the U.S. The suggested venture, envisaged in the same vein as that of the partnership between aerospace companies Embraer SA and Boeing Co., would be part of the the government's goal to "build transnational companies [and] cross borders in search of better economic opportunities," the minister said.

Guedes previously had suggested a possible partnership between the two banks following the elections last year. The economic minister is a friend of Alexandre Bettamio, Bank of America's president for Latin America, Valor said.

On the other hand, a full-on merger between Bank of America and a public bank like Banco do Brasil would be unfeasible due to cultural and operational differences, Valor cited an assessment from the U.S.-based bank as saying. American banks have also been restrictive when it comes to control acquisitions due to the large capital requirements involved, the publication said.