SHANGHAI Pengxin Group Co. is in talks to buy control of Brazilian mid-sized bank Banco Indusval & Partners SA, as the Chinese conglomerate aims to expand beyond commodities in Latin America’s largest economy, three sources with direct knowledge of the matter said.

    Representatives of Pengxin and BI&P, as the specialist in agricultural lending is known, have discussed tie-up scenarios, two sources said. Talks are preliminary and may not result in a deal, said all three sources.

    Pengxin’s search for financial, logistics and commodities firms in Brazil is gaining steam following its US$200 million purchase in April of a controlling stake in grain processor Fiagril Participaoes SA.

    Jair Ribeiro, BI&P’s chief executive officer and the bank’s fifth-biggest shareholder, has met with Pengxin representatives at least twice in recent months in China and Brazil, one source said.

    The Chinese group, which includes real estate development, agribusiness, mining and infrastructure construction, could spend up to US$3 billion on Brazilian targets, sources said.

    In a Tuesday securities filing, BI&P said it is constantly analyzing business opportunities and partnerships aimed at “maximizing shareholder value.” (SD-Agencies)