MGC buys Credigy, becomes 3rd largest in distressed credit in Brazil

MGC Holding, specialized in credit recovery, will become the third largest in the sector in Brazil with the acquisition of Credigy Brasil, distressed credit subsidiary of the National Bank of Canada. Eduardo Martins, partner in the Brazilian group, says that with the acquisition the holding company now has R$40 billion in credit rights and 19 million contracts. The portfolio also makes the house the largest independent manager, that is, not linked to banks, of stressed consumer assets in the country. MGC does not disclose transaction values due to restrictions by the Canadian regulator, but Mr. Martins considers it to be in line with recent transactions. In 2016, Itaú Unibanco acquired 89.08% of Recovery for R$640 million. With the purchase, the bank obtained a portfolio of R$38 billion in face value at the time.

Source: Valor International