BTG Pactual Acquires HSBC’s Uruguay Operations for $175 Million

In a strategic move to expand its presence in Latin America, Brazilian investment bank BTG Pactual has agreed to acquire HSBC’s operations in Uruguay for $175 million. This acquisition marks BTG Pactual’s first entry into the Spanish-speaking Uruguayan market and is expected to close within six to twelve months, pending regulatory approvals.

The deal encompasses HSBC’s retail banking, corporate credit, investment banking, and wealth management services in Uruguay. With approximately 50,000 clients and a market share of around 7%, the acquisition significantly bolsters BTG Pactual’s footprint in the region.

BTG Pactual’s partner, Rodrigo Goes, who oversees the bank’s Latin American operations outside of Brazil, highlighted that this acquisition aligns with the bank’s strategy to diversify its revenue streams across Latin America. He noted that the transaction was both strategically and financially advantageous, considering HSBC’s gradual withdrawal from South America, having previously sold its assets in Brazil and Argentina.

The acquisition is part of BTG Pactual’s broader international expansion strategy. In 2024, the bank acquired M.Y. Safra in the United States, and in 2023, it purchased Luxembourg-based FIS Privatbank, leading to the establishment of BTG Pactual Europe.

HSBC’s decision to sell its Uruguayan operations aligns with its global strategy to simplify its structure and focus resources on areas where it has a clear competitive advantage. The British bank has operated in Uruguay since 2000, with five branches and a headquarters in Montevideo.

Following the acquisition, BTG Pactual plans to introduce digital investment platforms, expand asset management services, and grow its investment banking presence in Uruguay, mirroring the model it has followed in other regional markets.

This strategic acquisition underscores BTG Pactual’s commitment to becoming a leading financial institution in Latin America, offering a comprehensive range of services to individuals and businesses across the region.