MercoPress. South Atlantic News Agency

HSBC sells out operations in Uruguay to leading Brazilian bank

BTG Pactual is already present in Mexico, Colombia, Peru, Chile, and Argentina

Brazilian bank BTG Pactual has acquired the Uruguayan operations of British bank HSBC for US$175 million, marking BTG Pactual's entry into Uruguay and HSBC's exit from the market as part of its global restructuring strategy. The deal, announced on Monday, includes both equity and additional capital instruments and is subject to regulatory approvals.

With this acquisition, BTG Pactual aims to offer a comprehensive range of financial services in Uruguay, including retail banking, corporate and SME lending, investment banking, and wealth management, catering to individuals and businesses. The bank, already present in Mexico, Colombia, Peru, Chile, and Argentina, views this as a strategic step in its Latin American expansion, seeking to become a leading financial institution in the region. Rodrigo Goes will oversee the new Uruguayan operations.

HSBC's decision to sell its five branches and entire business in Uruguay aligns with its global strategy, announced in 2024, to simplify its structure and focus resources on areas with stronger competitive advantages. The transaction also involves the transfer of all HSBC Uruguay employees to BTG Pactual to ensure a smooth transition.

“The transaction value is US$175 million, including both equity and additional capital instruments, and is subject to adjustments to reflect changes in capital until the closing date,” the Brazilian bank said in a statement.

The document also mentioned that the company will operate in Uruguay “in the areas of retail banking, corporate and SME lending, investment banking, and wealth management, offering a full range of products and services to individuals residing or doing business in the country, as well as to companies of all sizes.”

According to the statement, HSBC has five branches in Uruguay, as well as US$144 million in net equity and US$47 million in additional capital instruments held by the HSBC Group, reaching US$191 million in total capital.

The agreement was signed between HSBC Latin America Holdings (UK) Ltd, a wholly owned subsidiary of HSBC Holdings plc, and a subsidiary of Brazilian bank BTG Pactual, S.A. The transaction has a total value of approximately US$175 million, including equity and additional capital instruments, although it is subject to adjustments related to changes in capital until the formal closing of the transaction. HSBC is the fifth-largest private bank in the Uruguayan financial market.