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B3 to see cost savings from Cetip merger earlier than planned

Brazil stock exchange operator B3 SA – Brasil Bolsa Balcão said it will capture cost savings of 100 million Brazilian reais tied to its merger with Cetip SA – Mercados Organizados earlier than previously anticipated.

The company, formerly known as BM&FBOVESPA, said that it now sees 100 million reais in annual cost savings between 2018 and 2020, with that amount growing to 110 million reais by 2021.

In its previous guidance, B3 didn't expect to reach expense synergies of 100 million reais on a recurring basis until the third year following the merger approval.

The capture of synergies of expenses will come mainly from adjustments in personnel, which will account for 80% of the gains, according to presentation materials. IT-related integration and corporate improvements will also factor into the cost savings.

Part of the synergies captured will be transferred to B3's clients, the company said.

As of Dec. 13, US$1 as equivalent to 3.30 Brazilian reais.