A binding memorandum of understanding (MOU) has also been signed by both the companies to jointly develop the financial retail business in Chile and Argentina.
Itau will pay $27m to Cencosud for the establishment of a new company in Argentina unit and also provide necessary capital to finance the credit-card portfolio in both nations.
Cencosud will receive a total upfront payment of $1.58bn from the transactions.
Itaú has nearly 100,000 employees and manages operations in 20 nations across the Americas, Asia and Europe. It offers an array of financial services and products serving the most varied client profile – both individuals and companies of all sizes.
