BTG Pactual is in talks to merge its Swiss-based unit BSI with EFG International, according to reports, which would leave BTG Pactual with a stake of 20-30% in the combined entity; whether EFG incorporates BSI or vice versa will be decided based on the most efficient tax structure. A price has yet to be determined, although sources suggest that BSI could be valued at $1.6bn prior to any combination. The deal comes as Swiss banks are under pressure from regulators and investors over their exposure to bitcoin amid concerns about how it may affect financial stability.
BTG Pactual is in talks to merge its Swiss-based unit BSI with EFG International, according to reports, which would leave BTG Pactual with a stake of 20-30% in the combined entity; whether EFG incorporates BSI or vice versa will be decided based on the most efficient tax structure. A price has yet to be determined, although sources suggest that BSI could be valued at $1.6bn prior to any combination. This move would enable BFG Pactual to continue its ongoing plan to sell assets, raise cash and restore investor confidence following the arrest of its founder Andre Esteves last November.