SAO PAULO (Reuters) - An investment banking joint venture between UBS Group AG UBSG.S and state-controlled lender Banco do Brasil is ready to start operations, the Brazilian bank said in a statement on Wednesday.
Both banks announced a partnership almost a year ago, in a move to boost their dealmaker capability in Brazil, Chile, Argentina, Paraguay, Peru and Uruguay.
UBS, which holds a 50.01% controlling stake in the newly announced bank, will appoint the CEO, according to the filing. The bank, two sources said, will nominate Daniel Bassan, current UBS investment bank head in Brazil, to the post.
The chairman will be appointed by Banco do Brasil, which has picked Helio Magalhaes, its own current chairman, to the post, according to the sources, adding the bank was dubbed UBS BB.
The board will have six members, with each bank appointing three executives.
UBS will bring to the JV its investment banking platform and broker, while Banco do Brasil will bring access to its vast client base, to whom the new bank will offer its products and services.
Banco do Brasil, the country’s second-largest-lender, will also provide the JV with its strong balance sheet for deals that require credit.
The Swiss bank has been striking partnerships in Latin America to expand its investment banking business by further connecting clients globally. Earlier this month, it partnered with Colombian independent investment bank Inverlink.
Reporting by Carolina Mandl; editing by Richard Pullin and Grant McCool
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