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.