) - the Zurich-based bank - announced the completion of the
acquisition of Link Investimentos - a Brazilian brokerage firm.
Financial terms of the deal were not disclosed.
UBS AG stands to benefit from its foray into Brazil by providing
more diverse products and services to international as well as
local customers. Further, Brazil's reputation as the leading
market in Latin America will serve as an added incentive.
Moreover, managers at Link Investimentos look forward to the deal
and expect UBS AG's wide range of global products and
client-focused advice and services to benefit their clients.
Previously, in Nov 2012, after a wait of roughly two years, UBS
AG received the Brazilian government's approval to operate in the
country. The license allowed the Swiss bank to trade stocks,
bonds, currencies, commodities or other financial instruments,
with its own money in Brazil. Further, UBS AG can make
real-denominated loans, raise funds in the Brazilian market as
well as underwrite stock and bonds in the local market.
Along with the banking license, UBS AG gained consent from the
Brazilian regulators to buy Link Investimentos, which has been in
the pipeline since Apr 2010. Earlier in 2009, UBS AG sold its
Pactual bank division to Andre Esteves - the former head of
operations at Pactual bank - for a sum of $2.5 billion.
Majority of global banks are currently struggling with the gloomy
macro-economic factors and Eurozone crisis. As a matter of fact,
UBS AG's investment banking business has been faltering with a
sharp decline in its revenue. Moreover, the stressed operating
environment and stricter capital norms have added fuel to fire.
UBS currently retains a Zacks Rank #2 (Buy). However, we believe
that opportunistic acquisitions as well as prudent business model
changes can lead to an improvement in efficiency and add to its
Other foreign banks in the same sector with Zacks Rank #1 (Strong
Banco Bilbao Vizcaya Argentaria, S.A.
Shinhan Financial Group Company Limited
BBVA Banco Franc
BANCO BILBAO VZ (BBVA): Free Stock Analysis
BANCO FRANC-ADR (BFR): Free Stock Analysis
SHINHAN FIN-ADR (SHG): Free Stock Analysis
UBS AG (UBS): Free Stock Analysis Report
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