BTG Pactual announced on Monday the entry into Uruguay with the acquisition of HSBC operations in the country for 175 million dollars (R $ 973 million), expanding its presence in Latin America and strengthening the position of the largest investment bank in the region.
The bank has declared that it will operate in the sectors of retail, company credit, the investment bank and the management of fortune, with the offer of products and services to the public that resides or has business in Uruguay, as well as for companies of all sizes.
“It is a movement very in line with our growing strategy of diversification of revenue for the rest of Latin America beyond Brazil,” partner Rodrigo, head of BTG’s performance in other countries in the region, told Reuters, who will also be in advance of the operation in Uruguay.
“It was a very interesting and very opportunistic transaction. HSBC is leaving South America, has sold its goods in Brazil, more recently sold in Argentina and has now decided to sell in Uruguay. We ended up buying at a price that we considered very attractive,” he added.
At the end of 2024, HSBC had five agencies in Uruguay, a equity of $ 144 million and 47 million dollars in further capital tools held by the HSBC group, according to the BTG declaration. According to God, the unit has about 50 thousand customers and a market share of about 7%.
The value of the transaction includes further capital activities and tools and is subject to adjustments to reflect the variations of the equity until the date of completion of the company, which depends, among other conditions, on the regulatory approvals. BTG’s expectation is that this will happen in six-2 months.
In Latin America, BTG is already present in Chile, Colombia, Mexico, Peru and Argentina, in addition to Brazil.
According to Gos, the Region already represents about 12% of banks revenues, with levels of performance very similar to Brazil’s performance. The other countries of Latin America, he added, have about 20% of the bank’s corporate credit portfolio, with widespread very similar to those obtained in Brazil.
The executive stated that the acquisition brings value to BTG on the first day from the return point of view. He did not specify the current performance of the operation, but said that yields in Uruguay are very interesting in an interval from 25% to 30%. “In the case of HSBC, it is more in the high end of this” range “,” he added.
He also listed other factors for the entry of BTG into Uruguay, as an “extremely stable” economy and a well -consolidated bank jurisdiction. He also evaluated the fact that the country is quite friendly for investments, although, according to Go, it was not the main reason.
“Things got married … we had a seller interested in selling because it was part of the strategy, to leave the region, so we were able to buy a resource at a very interesting price, with great returns, in a jurisdiction that we like very and very important for the” patrimonial management “,” he said.
BTG Pactual has expanded his performance abroad. Last year, the bank closed the purchase of my Safra in the United States, where it already has offices in Miami and New York. More recently, he founded BTG Pactual Europe, after completing the acquisition of Luxembourg’s Privatbank Bags in 2023. He also has a physical presence in Portugal, Spain and United Kingdom.
“The acquisition of HSBC in Uruguay is an important part of our internationalization strategy and strengthens our presence in the region”, said the manager of BTG, Roberto Spellouti, in the press release.
In Latin America, it says that the Uruguay operation should be between “Top 3” excluding Brazil, behind Chile and Colombia only.
BTG also awaits a banking license response in Peru, which the bank estimates that it will take place between nine and 12 months, in addition to watching other opportunities in the region, according to the executive, in particular Mexico and Argentina.
In Mexico, he said that the bank analyzed some resources that had a good mix with the BTG business areas, but business never advanced. “We have always been very attentive to the price we paid … we are very interested, but we still don’t find anything.”
As for Argentina, the executive has said that the BTG already has a small and very profitable operation. He said that, despite the improvement of the macroeconomic point of view, it is a country with great volatility, with the macro very unstable in recent decades. “We are not yet ready to make a movement,” he said.
(US $ 1 = R $ 5.5622)
Source: Terra
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