UPDATE 2-Australia's Macquarie to buy Fox-Pitt for $130 mln

* Buy to help Macquarie expand into N. America, Europe

* Expects to close deal by Q4 of 2009

* Says will continue to hire in the U.S.

* Says no plans to become primary dealer to Fed

(Adds comments from conference call)

BANGALORE, Sept 30 (Reuters) - Australia's biggest investment bank Macquarie Group Ltd (MQG.AX) will buy Fox-Pitt Kelton Cochran Caronia Waller for $130 million, in a push to expand its presence in North America and Europe.

As part of the deal, a portion of the cash consideration will be deferred over four years following financial closure, Macquarie said in a statement.

The investment bank will assume $16.7 million of long-term liabilities as part of the deal.

The transaction will take the combined global financial institutions' research offering to 765 stocks globally and double the stock coverage universe in U.S. and European securities, Roy Laidlaw, global head of Macquarie securities group platforms, said.

Macquarie, best known as the world's largest investor in public infrastructure, expects to close the deal by the end of the fourth quarter of 2009.

Macquarie has been trying to increase its presence on Wall Street and has been hiring even as U.S. firms slashed thousands of jobs.

The company said it was not considering any other acquisition now, but will continue to hire in the U.S.

In an interview to Reuters earlier in September, the company's top U.S. executive had said Macquarie will keep its eye open for boutique acquisitions.

The company, which aims to be a profitable traditional investment bank, said it does not plan to apply for becoming a primary dealer to the U.S. Federal Reserve.

A primary dealer is required to make bids or offers in the Fed's open market operations and to take part in U.S. Treasury securities auctions.

The Fed also consults regularly with primary dealers as it gathers market intelligence and needs to be sure it is getting the best possible information. (Reporting by Sweta Singh in Bangalore; Editing by Unnikrishnan Nair)