Brazil's antitrust regulator, Cade, said in a preliminaryreport that it would approve Banco Bradesco SA's deal to 's Brazilian business,provided the banks agree on measures to minimize market concentration, Reutersreported April 4, citing the official gazette.

However, the recommendation of imposing restrictions on the dealis not binding and is subject to approval by a separate Cade court, accordingto the news source.

Cade reportedly said that due to the low in Brazil's bankingindustry, any merger operation should be viewed with caution.

Brazil's central bank approved the $5.2 billion deal in January.