BTG Pactual Groupwill soon announce a $1.6 billion plan to separate its commodities trading businessinto its own firm, Bloomberg News reported April 8 citing "a person familiarwith the matter."

The unit, which is headed by CEO Ricardo Leiman, would be renamedEngelhart Commodities Partners under the plan, according to Bloomberg's source.The move reportedly comes in an attempt to hold onto company talent and shield theunit from the bank's ongoing scandalfollowing the arrest of former BTG Pactual Chairman and CEO Andre Esteves in November2015. Bloomberg said the bank had been evaluating ways to give equity in the tradingunit to senior level staff and traders earlier in 2016.

The Brazilian bank is expected to announce its intention to spinoff the division later in the day, according to the report.