EFG International, a Swiss private banking group, is in negotiations with Brazil’s Grupo BTG Pactual to acquire the latter’s Swiss unit BSI.
BTG Pactual may retain a 20 to 30% stake in the combined company, according to Reuters.
EFG has confirmed that no decision has been made yet on the deal. However, according to media reports, the deal could be announced as early as next week.
Following the arrest and subsequent release of then-CEO Andre Esteves in November, the Brazilian lender has been offloading assets in order to raise cash.
The bank had completed the acquisition of BSI from Italy’s Assicurazioni Generali in a CHF1.25bn deal in September 2015.