UBS is in talks about a cooperation with a state-owned bank in Brazil. The Swiss giant wants to catch up with U.S. rivals in the South-American country.

UBS and Banco do Brasil may ink a deal as soon as in the coming month of October, according to a report by «Reuters». The Swiss bank aims to take a controlling stake in the investment banking business of the state-owned bank, the report said. Both banks will however retain an equal say in the ensuing joint venture.

Both companies refused to comment on the proposed deal, «Reuters» said. The Swiss bank hopes to use the local bank’s balance sheet as back up for investment-banking transactions, while Banco do Brasil expects to achieve a wider reach among foreign clients.

Jockeying for Business

A deal would signify a substantial acceleration in UBS’s quest to gain a proper foothold in the Brazil-based investment business. The bank has had a license in the country sind 2014, having suffered a severe setback in 2009. It was forced to sell Brazil-unit BTG Pactual to former owner Andre Esteves.

UBS since has expanded its position in the country but seems to have fallen behind U.S. rivals, the news agency said. Given the proposed privatizations under populist President Jair Bolsonaro, the bank may want to achieve a stronger position in that market.

U.S. Investment Banking Input

The report also mentioned that Ros Stephenson, a UBS manager based in the U.S., was behind the cooperation between the two banks. Stephenson was seen as profiting from the recently announced restructuring at the UBS investment bank. He will assume the joint lead over the corporate advisory service with Javier Oficialdegui.