BTG Pactual to buy HSBC's Uruguay operation for $175 million

By Paula Laier

SAO PAULO (Reuters) -Brazilian bank BTG Pactual on Monday said it will snap up HSBC's operations in Uruguay for $175 million, marking its first foray into the Spanish-speaking country and expanding its presence in Latin America.

By buying the London-listed bank's Uruguay assets, BTG Pactual will operate in retail banking, corporate credit, investment banking and wealth management, serving individuals and businesses of all sizes, it said.

"This move aligns closely with our strategy of increasing revenue diversification across Latin America beyond Brazil," BTG Pactual partner Rodrigo Goes, who oversees the bank's Latin America operations outside of Brazil, told Reuters.

BTG Pactual has been on an international spending spree in recent years, buying M.Y. Safra in the United States in 2024 and Luxembourg-based FIS Privatbank in 2023, which it used to establish BTG Pactual Europe.

"It was a very interesting and opportunistic transaction. We ended up buying at a price we consider very attractive," said Goes, who will also oversee the bank's new Uruguayan unit, which has about 50,000 clients and a market share of around 7%.

The transaction value includes equity and additional capital instruments and is subject to adjustments to reflect changes in equity until the deal closes, which is contingent on regulatory approvals, BTG Pactual said.

The deal is expected to close within six to 12 months.

In Latin America, in addition to Brazil, BTG is also present in Chile, Colombia, Mexico, Peru and Argentina.

In Peru, BTG is waiting for a response to its banking license application, which it expects to complete within nine to 12 months, Goes said, adding that the bank continues to explore other opportunities in the region.

While BTG has so far analyzed some assets that would complement its business areas in Mexico, no deals have materialized so far, Goes said.

"We've always been very careful about the price we pay … we're very interested, but haven't found the right fit yet," he said.

(Reporting by Paula Arend Laier; Writing by Oliver Griffin; Editing by Gabriel Araujo)