UnitedHealth Group (UNH, Financials) is pursuing a $1 billion divestiture of its Latin American unit Banmedica as the U.S.-based insurer retreats from international markets and works to stabilize its leadership and operations, sources told Reuters.
The company has received four non-binding bids for Banmedica, which operates in Chile and Colombia. Interested parties include Acon Investments, Christus Health, Patria Investments (PAX, Financials), and Auna. Binding offers are expected in July.
The move follows a series of blows to UnitedHealth, including a surprise CEO ouster, a reported criminal probe into Medicare billing practices, and the December 2024 murder of UnitedHealthcare CEO Brian Thompson. Shares are down 40% year to date, including a 25.5% drop in May alone.
Banmedica, acquired in 2018, remains profitable with more than $200 million in annual EBITDA and over 2.1 million policyholders. However, it is seen as non-core amid UnitedHealth's renewed U.S.-centric strategy. The group exited Brazil last year and Peru in March, incurring $8.3 billion in charges.
The divestiture is being managed by BTG Pactual. UnitedHealth declined to comment.
https://finance.yahoo.com/news/unitedhealth-unh-eyes-1-billion-174211763.html
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