Feb 1 MetLife Inc said it has agreed
with BBVA to buy AFP Provida S.A., the largest private
pension fund administrator in Chile, for about $2 billion in
cash to expand its presence in emerging markets.
MetLife said BBVA, Spain's second-biggest bank, has agreed
to transfer its 64.3 percent stake to MetLife.
"The assets, customers and intellectual capital this
transaction brings into the MetLife family of businesses will
transform our operations in Chile," said MetLife's William
Wheeler, president, the Americas.
"With the acquisition of Provida, MetLife's operating
earnings from emerging markets are expected to grow from 14
percent today to approximately 17 percent," the company said in
The transaction, which is expected to close in the third
quarter of 2013 and, is expected to add about 5 cents per share
in 2013 and 15 cents per share in 2014 to operating earnings.
As of Sept. 30, Provida had $45.3 billion in assets under
management and 1.8 million contributors, Metlife said.
BofA Merrill Lynch acted as financial advisor to MetLife.
Banks across the world have been shedding non-core assets
and pulling out of some countries, as new capital rules aimed at
preventing a repeat of the 2008 financial crises force many to
clamp down on underperforming assets and rein in their costs.
In November, Grupo Financiero Banorte SAB de CV (Banorte),
which runs one of Mexico's biggest financial groups, agreed to
buy a local pension fund owned by BBVA in a deal valued at $1.6