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UBS Plans to Expand Asset Management, May Buy Brazil's BB DTVM
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Continuing with its efforts to strengthen the asset management business, UBS Group AG (UBS - Free Report) is in talks to purchase a controlling stake in BB DTVM, which is the asset management unit of Banco do Brasil S.A. This was reported by Bloomberg.
Per sources familiar with the matter, Franklin Templeton, the subsidiary of Franklin Resources, Inc. (BEN - Free Report) , and BlackRock, Inc. (BLK - Free Report) are also competing to acquire Brazil’s biggest asset management company.
Notably, discussions to acquire this asset manager, which has 1.2 trillion reais ($217 billion) in assets under management, are still at a nascent stage and no accord has been arrived at. The business generated revenues of more than 6.85 billion reais last year, up 7.2 % from 2019’s figure.
Nonetheless, the sale procedure could get delayed as Banco do Brasil is in the process of replacing its CEO, Andre Brandao. While Fausto de Andrade Ribeiro has been named as the new CEO, there are speculations whether he will go ahead with the divestiture of the asset management business.
Banco do Brasil is planning to offload the asset management business with an aim to improve profitability. This includes disposing of assets, moving away from riskier loans and shuttering branches.
Over the years, UBS has been diversifying operations and footprints by undertaking partnerships. In September 2020, the company entered into an investment banking joint-venture agreement with Banco do Brasil. Earlier in 2019, the bank entered into a joint venture with Japan’s largest trust banking group, Sumitomo Mitsui Trust Holdings, which gave it access to the latter’s affluent client base. Also, the company has a brokerage entity in Brazil and a commercial agreement with Banco Patagonia in Argentina. Given its strong balance-sheet position, the company is focused on opportunistic expansion strategies that will fuel growth.
Over the past six months, shares of UBS have gained 49.4%, underperforming 52.3% growth recorded by the industry.
The Zacks Consensus Estimate for Credit Suisse Group’s 2021 earnings has been revised 12.5% upward over the past 30 days. Moreover, the stock has appreciated 36.7% over the past six months. It currently carries a Zacks Rank #2 (Buy).
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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UBS Plans to Expand Asset Management, May Buy Brazil's BB DTVM
Continuing with its efforts to strengthen the asset management business, UBS Group AG (UBS - Free Report) is in talks to purchase a controlling stake in BB DTVM, which is the asset management unit of Banco do Brasil S.A. This was reported by Bloomberg.
Per sources familiar with the matter, Franklin Templeton, the subsidiary of Franklin Resources, Inc. (BEN - Free Report) , and BlackRock, Inc. (BLK - Free Report) are also competing to acquire Brazil’s biggest asset management company.
Notably, discussions to acquire this asset manager, which has 1.2 trillion reais ($217 billion) in assets under management, are still at a nascent stage and no accord has been arrived at. The business generated revenues of more than 6.85 billion reais last year, up 7.2 % from 2019’s figure.
Nonetheless, the sale procedure could get delayed as Banco do Brasil is in the process of replacing its CEO, Andre Brandao. While Fausto de Andrade Ribeiro has been named as the new CEO, there are speculations whether he will go ahead with the divestiture of the asset management business.
Banco do Brasil is planning to offload the asset management business with an aim to improve profitability. This includes disposing of assets, moving away from riskier loans and shuttering branches.
Over the years, UBS has been diversifying operations and footprints by undertaking partnerships. In September 2020, the company entered into an investment banking joint-venture agreement with Banco do Brasil. Earlier in 2019, the bank entered into a joint venture with Japan’s largest trust banking group, Sumitomo Mitsui Trust Holdings, which gave it access to the latter’s affluent client base. Also, the company has a brokerage entity in Brazil and a commercial agreement with Banco Patagonia in Argentina. Given its strong balance-sheet position, the company is focused on opportunistic expansion strategies that will fuel growth.
Over the past six months, shares of UBS have gained 49.4%, underperforming 52.3% growth recorded by the industry.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
The Zacks Consensus Estimate for Credit Suisse Group’s 2021 earnings has been revised 12.5% upward over the past 30 days. Moreover, the stock has appreciated 36.7% over the past six months. It currently carries a Zacks Rank #2 (Buy).
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>