Banco do Brasil SA and Switzerland-based UBS Group AG signed a nonbinding memorandum of understanding for a strategic partnership to provide investment banking and institutional securities brokerage services in select South American countries.
The venture between the two banking giants will provide investment banking services in Brazil, Argentina, Chile, Paraguay, Peru and Uruguay, using Banco do Brasil's corporate clients and UBS' global execution and distribution capabilities, according to a news release.
If a final agreement is executed, the Swiss bank would be the majority shareholder in the partnership with a 50.01% stake. According to previous reports, no payment will be expected in the deal.
UBS also previously announced a revamp of its investment banking business in a drive to boost profit and reduce costs.
