M&A: BBVA continues pensions exit

Mar 1, 2013

BBVA continues to dispose its LatAm pension businesses, with the $2 billion sale of its Chilean AFP Provida unit in February. That followed the $530 million sale of Horizonte in Colombia in January. The Spanish bank has sold three LatAm pension funds, with only its Peru operation remaining.

BBVA continues to dispose its LatAm pension businesses, with the $2 billion sale of its Chilean AFP Provida unit in February. That followed the $530 million sale of Horizonte in Colombia in January. The Spanish bank has sold three LatAm pension funds, with only its Peru operation remaining. In Chile, MetLife paid a smaller proportion of assets and earnings for Provida than other recent pension sales. The US insurer paid $1.52 billion for 64.3% of Provida, and will tender publicly for the remainder. The deal offered around 4.4% of assets under management (AUM) or 11 times annual earnings. That compares with the 4.7% of AUM and 13 times earnings that Prudential Financial paid for AFP Cuprum when it bought it for $1.5 billion in 2012 – the most recent previous Chilean pension deal. BBVA sold its Mexican pension fund at...

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