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MoneyGram inks deal for 1,000 locations in Brazil

October 6th, 2009

MoneyGram InternationalMoneyGram International signs contract with Itau Unibanco to add 1,000 locations in Brazil

Money transfer service MoneyGram International on Tuesday said it signed a multiyear contract with Brazil’s largest private-sector bank to add 1,000 agent locations in that country.

The terms of the contract were not disclosed.

MoneyGram services will be added in phases to 1,000 locations of Itau Unibanco as part of the bank’s plans to combine Banco Itau and Unibanco. In November, the banks announced plans to merge creating Itau Unibanco, which has combined assets of roughly 575.1 billion reals ($261.4 billion).

The Minneapolis-based company said remittances play a large role in Brazil’s economy, with more than $7 billion sent into the country last year by 4 million Brazilians living abroad.

In morning trading, MoneyGram shares added 10 cents, or 3.4 percent, to $3.04. The stock has traded between 80 cents and $3.43 in the past 52 weeks.

American Depositary Shares of Itau Unibanco gained 28 cents to $21.10.

www.ap.org


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