US investment firm Merrill Lynch has signed a deal to acquire the Chilean equity brokerage firm Ureta y Bianchi Corredores de Bolsa as part of a larger plan to build a wholly owned global markets and investment banking platform in Chile.

The acquisition provides Merrill Lynch with an immediate presence in the equities business in Chile and a top-tier equities management team.

Merrill Lynch said the deal will also enable it to strengthen its relationships with Ureta y Bianchi's high net worth retail clients. " Chile is one of the most attractive private banking markets in Latin America, due to its stable government, prospering local economy and established capital markets," said Darcie Burk, managing director and head of Merrill Lynch's GWM business in Latin America. "The acquisition gives us the opportunity to explore different alternatives to expand our wealth management offering."

"The acquisition of Ureta y Bianchi is consistent with our long-term strategy of pursuing a broad Latin American business platform that spans multiple countries, asset classes, industry sectors and clients," said James Quigley, president of Latin America and Canada at Merrill Lynch.

"We view the Santiago presence as a necessary addition to the portfolio of capabilities we have developed in major Latin American countries in the past few years. Having a GMI operation in Chile will help us service local, regional and international institutional investors and corporate clients seeking opportunities across the major economies and capital markets in the region."

Ureta y Bianchi was identified by Merrill Lynch because of its meaningful market share in Chilean equities, its long trading history since its inception in 1936, its strong private client relationships and its high-quality management.

The brokerage will be renamed to incorporate the Merrill Lynch brand name. Francisco Ossa, one of Ureta y Bianchi's partners, will head Merrill Lynch Chile's local equity business and will be joined by the other Ureta y Bianchi partners, Manuel José Ureta, Alfredo Ureta and Ignacio Perez. Hans Trautmann, Merrill Lynch's senior fixed income banker based in Santiago, will oversee the development of FICC business in the country.

Daniel Gonzalez will continue as the head of the Southern Cone countries, overseeing Chile, Argentina and Uruguay.