Swiss investment bank UBS and Brazilian bank Banco do Brasil have signed a non-binding memorandum of understanding (MOU) to provide investment banking services and institutional securities brokerage in Brazil and select South American countries.
Through their strategic partnership, UBS and Banco do Brasil aim to provide investment banking services in countries including Brazil, Argentina, Chile, Paraguay, Peru and Uruguay.
The partnership will leverage the Brazilian bank’s corporate clients and UBS’ global execution and distribution capabilities.
Both the parties expect that the strategic and long-term partnership will create a leading investment bank platform in the region with global coverage and will build on the complementary strengths of the two banks.
Furthermore, the partnership will provide its clients with holistic solutions and offer additional benefits for its stakeholders.
UBS will hold the majority stake in the partnership
As per the MOU, UBS is expected to be the majority shareholder in the partnership with 50.01% stake and the remaining 49.99% stake will be held by Banco do Brasil.
The partnership will be established through the contribution of assets by both the parties in accordance with the definitive terms and conditions of the agreement, which is still under negotiation.
Implementation of the partnership is subject to the successful conclusion of the negotiation and on the execution of any binding transaction documents along with relevant internal and external approvals, UBS and Banco do Brasil stated.
In June this year, UBS partnered with Sumitomo Mitsui Trust to launch a comprehensive strategic wealth management partnership in Japan.
The two companies have agreed to establish a joint venture with 51% stake owned by UBS and the remaining 49% stake owned by Sumitomo Mitsui Trust.
The JV will offer products, investment advice and services. It will open UBS’s current wealth management customer base to full range of Japanese real estate and trust services, while SuMi Trust Holdings’ clients, which is one of the largest pools of high net worth (HNW) and ultrahigh net worth (UHNW) individuals in Japan, will be able to access UBS’s wealth management services, including securities trading, research, and advisory capabilities.
UBS also claimed that it is the first-ever wealth management partnership in Japan developed between an international financial group and a Japanese trust bank.
Subject to receiving all the necessary regulatory approvals, the joint venture is expected to begin operations by the end of this year.
