Dec. 2 (Bloomberg) -- Grupo BTG Pactual, the Brazilian investment bank that’s expanding in commodities, applied to operate warehouses in the Detroit area.
BTG Pactual Commodities Warehousing (US) LLC filed an application with the state of Michigan’s Department of Licensing and Regulatory Affairs on Nov. 26, documents showed. The company’s registered office is in Bingham Farms, near Detroit. BTG’s warehouse unit was incorporated on Oct. 28, according to a filing with the Delaware Department of State.
Detroit is the world’s second-largest repository for stockpiles of aluminum monitored by the London Metal Exchange. Goldman Sachs Group Inc.’s Metro International Trade Services LLC has the most LME-approved warehouses in the city, while Noble Group Ltd.’s Worldwide Warehouse Solutions LLC and Glencore Xstrata Plc’s Pacorini Metals also have depots there.
BTG Pactual this year hired Ricardo Leiman and Shon Loth, respectively Noble’s former chief executive officer and ex-head of metal warehousing, for its raw-materials division.
The commodities business at BTG Pactual will have about 200 people in 2014, from 120 now, Chief Financial Officer Marcelo Kalim said on a conference call on Nov. 6. The Sao Paulo-based bank may have to set up a storage structure for its raw-materials activities via either an acquisition or organic growth, Kalim also said.
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