Swiss wealth manager UBS has signed a non-binding memorandum of understanding (MoU) with Banco do Brasil to form a joint venture to offer investment banking and institutional securities brokerage services in South America.
Through the alliance, the companies aim to service Brazil, Argentina, Chile, Paraguay, Peru as well as Uruguay.
The two parties are currently in talks over the tie-up and a binding agreement will follow.
If materialised, UBS will have a 50.01% stake in the venture. The partnership is said to offer “access to Banco do Brasil’s corporate clients and UBS’s global execution and distribution capabilities”.
Commenting on the proposed venture, the companies said: “Both UBS and Banco do Brasil believe that the formation of a strategic, long-term partnership would create a leading investment bank platform in the region with global coverage by building on the complementary strengths of UBS and Banco do Brasil.
“The partnership is expected to provide its clients with comprehensive solutions and would provide additional benefits for its stakeholders.”
Recently, a handful of Swiss banks have targeted the South America market to drive growth.
Last year, Julius Baer acquired a 95% stake in Brazilian wealth manager Reliance Group.
Earlier this year, Swiss private bank Mirabaud obtained regulatory approval to launch two wealth management units in Montevideo, Uruguay.