"The investment in CA Torque enables our organisation to build on existing connectivity in Uruguay and helps to expand the options for identifying and developing local and South American talent," a statement on City's website said.
City Football Group (CFG) have also entered into a collaboration agreement with Atletico Venezuela of the Primera Division of Venezuela.
CFG already own MLS club New York City and Melbourne City in Australia's A League. They also have a stake in Japan's Yokohama F Marinos in the J League.
(Reporting by Neil Robinson; Editing by Toby Davis)
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