UBS (UBS) Sells Brazilian Unit For $2.5 billion

UBS AG (NYSE: UBS) sold its Brazilian business earlier today for about $2.5 billion to BTG Investments in an effort to reduce risk and streamline its operations, according to the AP. BTG, based in Sao Paulo, is run by former UBS senior executive Andre Esteves.

UBS is cutting thousands of jobs as a result of billions in losses over the past two years through bad investments, said the transaction would result in a "small loss" when quarterly results are published in May.

The sale of UBS Pactual to BTG is expected to be completed in the middle of the year.

"The sale of the Brazilian business is consistent with UBS's policy to continue to reduce its risk profile, strengthen its balance sheet and sharpen its business focus," UBS said. "UBS expects no disruption to its other businesses as a result of the transaction."

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