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Latin American Economy & Business - April 2016 (ISSN 1741-7430)

Region: Corporate Radar

Corpbanca and Itaú Fuse: On 1 April, the Chile-based Corpbanca and the local subsidiary of Brazil’s Itaú Unibanco formalised their long-drawn-out merger process. The merged entity, the fourth largest bank in the Chilean market, will be known formally as Itaú Corpbanca. It will trade under the Itaú brand, and will have US$41bn in assets and a US$31bn loan book. The Brazilian parent, Itaú UInibanco will control the bank, with a 33.58% shareholding. CorpGroup, former owner of Corpbanca, will have 33.13% of the shares, with the remaining 33.29% in the hands of a range of minority shareholders. The merged Chilean bank will have a 66.28% controlling interest in Corpbanca Colombia and 100% of the shares of Itaú Colombia.

Flying Latin Americans: Despite the current slowdown in economic growth, Latin American aviation markets will see “robust expansion”, various industry executives said at FIDAE, the Santiago-based international aviation fair. Germán Efromovich, president of Avianca Holdings, said that “future opportunities are immense”, citing low market penetration. Latin America has 0.4 available aeroplane seats per capita, only one-sixth of the level in the US. At FIDAE, Boeing said that between now and 2035 the region will need to spend US$330bn to purchase 2,040 new commercial aircraft. Demand for air travel in Latin America has grown at an annual average of 7% over the last five years, above the global average of 5%, according to Brazilian plane manufacturer Embraer. According to the regional president of Airbus, Rafael Alonso, by 2034 nine of the world’s 91 mega-cities will be Latin American, boosting the region’s significance in terms of the global aviation market.

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