HSBC awaits Brazil watchdog ruling on proposed sale of Bradesco

Brazil's commerce watchdog, Cade, is set to rule today on whether Asia-focused bank HSBC can sell its Brazilian unit to Banco Bradesco SA.

The decision has potentially big implications for HSBC and its shareholders going forward.

Chief executive Stuart Gulliver is said to be counting on the $5.2bn sale of HSBC Bank Brasil Banco Múltiplo SA to boost the group's main capital ratio, Reuters has reported.

Such a sale would also ensure HSBC remained the biggest dividend payer among its European peers, the news agency reported.

Some pundits have queried whether HSBC would maintain its payout if the unit sale was delayed.

Brazil's central bank has already given the deal a thumbs up.

However, watchdog Cade -- the Administrative Council for Economic Defense -- has clashed with the central bank previously over their roles in overseeing merger and acquisition activity in banking.