Investment banking: Goldman/Pactual deal is called off
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BANKING

Investment banking: Goldman/Pactual deal is called off

Year-long talks to create leading investment bank in Brazil break down.

Just over a year ago, news articles started appearing saying that Goldman Sachs would enter into a joint venture with Brazilian investment bank Banco Pactual. The deal, valued at $2 billion, was a top topic of conversation among Latin American investment bankers for most of 2005.

Top three advisors, Brazil M&A 2004
Rank Advisor Value $mln % share
1 Goldman Sachs 18,345.1 71.5
2 JPMorgan 16,314.3 63.6
3 Citigroup 16,232.0 63.3
Top three advisors, Brazil M&A 2005
Rank Advisor Value $mln % share
1 UBS 3,412.6 21.7
2 JPMorgan 3,052.4 19.4
3 Goldman Sachs 2,753.7 17.5
Source: Dealogic

At the end of the year, however, the two sides reportedly decided to break off the negotiations, which had been dragging on since August 2004.

Risks and rewards

A merger of the Latin American operations of Goldman and Pactual carried enormous risks and potential rewards.

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