Portugal-based Banif-BancoInternacional do Funchal SA has signed a multiphase deal with for the Brazilianinvestment bank to eventually acquire Banif Brasil, Económico reported.

The deal will roll out as a joint venture between the two banksand progress into a complete acquisition by BTG Pactual, pending regulatory approvalin both countries.

The acquisition will more than likely include Banif Brasil'spresent operations and Banif's former Brazilian operation Banif - Banco Internacional do Funchal (Brasil) SA, accordingto the July 7 report.

Brazilian credit guarantee fund, FGC, will be involved in thenegotiations, Valor Econômico reportedJuly 11.

Banif Brasil doesn't have much to offer BTG in terms of assets,as it has been undergoing a restructuring process for more than two years afterreportedly incurring losses worth up to €267 million between 2012 and 2015.

The multiphase plan could boost BTG Pactual's financial positionto help pay off a 6 billion Brazilian reais FGC credit line it assumed while undergoing a liquidity crisislast year while also presenting Banif with a long-awaited opportunity to departthe Brazilian bank market, the publications noted.

When contacted by S&P Global Market Intelligence, BTG Pactualand credit fund FGC declined to comment on the matter.

As of July 8, US$1 wasequivalent to 3.30 Brazilian reais.