CT T - Correios de Portugal and BCC-Grupo Cooperativo Cajamar have ended talks over a potential acquisition of Banco CT T by the Spanish lender, according to people familiar with the matter. The parties failed to reach an agreement on the banking unit, said the people, who asked not to be identified because the negotiations were private.

CT T continues to consider strategic options for it while investing in growth of the customer base and its digital capabilities, they said. Representatives for CT T and Cajamar declined to comment.

CT T hired BNP Paribas as financial adviser earlier this year to assess strategic options for Banco CT T after Cajamar expressed interest in the unit, Bloomberg News reported in July. CT T subsequently confirmed it had received an unsolicited, non-binding approach for Banco CT T, adding it was too early to say if it would lead to a deal.

Banco CT T has a network of more than 200 branches operating inside post offices across Portugal. It's one of the country's smaller lenders, with reported net income of €20.8 million ($24.1 million) last year. Spanish banks already account for almost a third of Portugal's banking assets, according to Bloomberg data, with lenders including Banco Santander SA, Caixa Bank SA, Banco Bilbao Vizcaya Argentaria SA, Abanca and Bankinter SA operating in the country.