LONDON - MetLife agreed on Friday to buy the Chilean pension fund provider AFP Provida from the Spanish bank BBVA for around $2 billion.
Under the terms of the agreement, MetLife said it would offer to buy the remaining shares in AFP Provida after BBVA had agreed to sell its 64.3 percent stake in AFP to MetLife.
BBVA, which on Friday reported a net profit of 20 million euros, or $27 million, in the fourth quarter, announced last year that it was looking to sell its Latin American pension fund operations. The Spanish bank is seeking to raise money by shedding assets to cover exposure to a struggling domestic real estate market.
MetLife said it was acquiring AFP Provida in a bid to expand into fast-growing developing markets. The Chilean pension fund provider, which also operates in Ecuador, has around $45 billion of assets under management, according to a company statement.
“MetLife is delivering on a ke component of our strategy, expanding our presence in emerging markets,†MetLife’s chairman, Steven A. Kandarian, said in a statement.
The deal for AFP Provida is expected to close by the third quarter of this year.
Bank of America and the law firms Skadden, Arps, Slate, Meagher & Flom and Prieto & Company advised MetLife on the deal.
