Brazilian bank BTG Pactual announced on Monday it agreed to buy HSBC operations in Uruguay for $175 million, the former investment bank’s first foray into a Spanish-speaking nation.
Under regulatory approval, the deal, comprising equity and other capital instruments, is expected to close in six to twelve months.
This acquisition will massively enhance the Latin American footprint of BTG Pactual.
Under the deal, the bank will provide a wide range of services in Uruguay, including retail banking, corporate credit, investment banking, and wealth management to individuals and businesses.
Strategic diversification throughout Latin America
Rodrigo Goes, a partner at BTG Pactual who manages the bank’s activities outside of Brazil, hailed the acquisition as “a very interesting and opportunistic transaction,” noting that the bank believes the purchase price is reasonable.
Goes will also be in charge of BTG’s new Uruguayan operation, which presently has over 50,000 clients and a market share of about 7%.
“This move aligns closely with our strategy of increasing revenue diversification across Latin America beyond Brazil,” Goes told reporters.
The Uruguay purchase is part of BTG Pactual’s larger strategy to strengthen its regional reach and lessen dependency on its home market.
Beyond Brazil, the bank is already present in Chile, Colombia, Mexico, Peru, and Argentina.
The addition of Uruguay advances BTG’s goal of becoming a dominant financial player on the continent.
Accelerating international expansion
BTG’s acquisition of Uruguay comes after a string of international expansions in recent years.
In 2024, it bought M.Y. Safra in the US, and in 2023, it took FIS Privatbank in Luxembourg, to create BTG Pactual Europe.
Such purchases form a conscious strategy to step out globally through targeted and opportunistic acquisitions.
Meanwhile, BTG Pactual presses ahead with growth opportunities in Latin America.
The bank is waiting for government approval for a banking license application in Peru, one it anticipates will be settled in a timeframe of nine to twelve months.
Goes said BTG is also studying deals in Mexico, but has yet to close on any transactions there.
“We’ve always been very careful about the price we pay … we’re very interested, but haven’t found the right fit yet,” Goes noted.
Deal terms and outlook
The $175 million price tag for HSBC’s Uruguayan operations includes equity and extra capital instruments, with the final sum subject to revision based on equity movements until the transaction is closed.
Regulatory approval is the final hurdle before the transaction is completed.
Once completed, the acquisition will be a significant milestone in BTG Pactual’s regional strategy, adding a new market while also improving the bank’s ability to serve a more diverse clientele throughout Latin America.
The move demonstrates BTG’s long-term commitment to growth through measured, strategic investments that strengthen its core skills in banking and asset management.
As Goes takes over the Uruguayan branch, BTG Pactual will seek to duplicate its success in Brazil and other markets by providing a comprehensive range of financial services, underpinned by strong regional expertise and rigorous dealmaking.
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