UBS Group AG UBS has been granted approval by the Brazilian central bank for setting up a majority-owned joint venture (JV) in Brazil, per Reuters. The company will form this JV with state-governed Banco do Brasil SA.
The companies announced last November about forming a partnership and set up a new investment banking unit. UBS Group will hold a stake of 50.01% in the JV.
Banco do Brasil informed that the management structure of the newly-formed bank will be announced as soon as the JV is formalized.
The JV will allow UBS Group to gain further access to the burgeoning market of Brazil, which is presently witnessing many new share offerings by companies to raise capital. Moreover, Banco do Brasil’s standing as the second largest bank in Brazil by assets, along with its vast client base and strong financials, will aid UBS Group to gain a strong foothold in the country.
Shares of this Zacks Rank #2 (Buy) company have appreciated 18.1% over the past year, while its industry has declined 19.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In addition to UBS Group, various global finance companies are seeking to expand their operations on foreign shores, especially China. Many of these firms are already banking on the options available. Recently, BlackRock BLK got the green light to set up a majority-owned JV in China.
Banks like Goldman Sachs GS, Morgan Stanley MS and Nomura Holdings have either received approvals or are waiting for the same to increase stakes in their respective JVs in China.
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