Awards for Excellence 2007: Best Emerging Markets Investment Bank

Awards for Excellence 

UBS

UBS is already the world’s leading wealth manager; now it can claim to be the best investment bank, at least in the emerging markets. Last year, the Swiss bank stole a march on its rivals with high-profile moves in Brazil and China. In Brazil, it paid up to $2.6 billion to buy local brokerage house and asset manager Banco Pactual. This could help UBS become the dominant force in Brazilian investment banking, and, in the year since the agreement was announced, it appears to have reaped rich rewards.

In China, the bank spent $210 million for a 20% stake in Beijing Securities, although it has the option to increase its share. Irrespective of whether or not it does, the bank has management control. The transaction is one of only two agreements between a foreign investment bank and a domestic securities firm that the Chinese government has approved (the other being a deal between Goldman Sachs and Gao Hua).

These are not cheap deals but they mean that UBS now has a formidable business in three of the biggest emerging countries.