Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Brazil
  4. Bolsa de Valores de Sao Paulo
  5. Banco Bradesco S.A.
  6. News
  7. Summary
    BBDC4   BRBBDCACNPR8

BANCO BRADESCO S.A.

(BBDC4)
  Report
End-of-day quote Bolsa de Valores de Sao Paulo  -  2022-09-26
19.62 BRL   -0.81%
09:48aBrazil central bank says a final interest hike was widely debated
RE
09/16Investment banks in Brazil focus on debt in the short term -Bradesco BBI
RE
09/15Banco Bradesco S A : Bradesco 2Q22 - Institutional Presentation
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: UnitedHealth struggling to sell Brazilian unit Amil

08/03/2022 | 09:42am EDT
FILE PHOTO: The Amil Participacoes SA's headquarters is pictured in Rio de Janeiro

SAO PAULO (Reuters) - UnitedHealth Group Inc, the top U.S. healthcare company by market capitalization, is struggling to sell Brazilian unit Amil due to antitrust issues and growing losses from individual health plans, according to four people with knowledge of the matter.

After studying ways to divest Amil 10 years after acquiring it, UnitedHealth decided last month to suspend the sale process, the sources said, asking for anonymity because the discussions were private.

UnitedHealth had agreed to pay acquirers for Amil's loss-making units and lose money on the sale of the whole company, but did not receive an attractive proposal, the sources added.

The latest talks involved Brazilian medical labs company Diagnosticos de America SA, or Dasa, and the insurance unit of Banco Bradesco SA. As Dasa shares fell 44% this year, the idea of a deal paid partially in shares became much less viable, the people added.

UnitedHealth declined to comment on details of its Brazilian operations or negotiations.

"UHG is a long term investor in Brazil, first entering the market in 2012, and UHG intends to continue to serve the Brazilian health care market," UnitedHealth spokesman Matthew Stearns said in an e-mailed statement.

Private equity funds also looked at the deal, but decided not to bid due to its complexity, a fifth source said.

Dasa and Bradesco proposed delayed payment while keeping UnitedHealth as minority shareholder, which the U.S. company rejected, the sources added.

Dasa and Bradesco declined to comment. BTG Pactual, which is handling the mandate, did not reply to a request for comment.

UnitedHealth had accepted to lose money on the sale, as it had become clear that it would not fetch the $5 billion it paid for the company 10 years ago, according to the people. The value of the Brazil business is now estimated at $1 billion, said two of the sources.

UnitedHealth has not booked any loss related to Amil. In January, the company changed how it reports international businesses. Amil is now part of the employer & individual health plan division, which includes operations in the United States.

Some of Amil's largest rivals, such as hospital chain Rede D'Or Sao Luiz SA, had looked into a potential acquisition in January, sources said, but closed other deals after that, creating potential antitrust restrictions.

Rede D'Or announced in February acquisition of insurer SulAmerica SA..

Rede D'Or did not immediately respond to requests for comment.

REGULATORY HEADACHES

UnitedHealth Group CEO Andrew Witty announced the decision to sell Amil soon after taking the helm last year.

UnitedHealth has 3.4 million health insurance beneficiaries in Brazil, 2.2 million clients of dental benefits, and owns and manages 31 hospitals and 82 clinics. The Brazilian hospitals and part of the insurance portfolio are profitable, sources said.

Gaps in the public healthcare system have led a growing number of Brazilians to rely on private health insurance, which now serves around 49 million people.

However, decisions by Brazilian healthcare regulator ANS have created headaches for the segment since UnitedHealth acquired Amil. Its portfolio of 340,000 individual healthcare plans is subject to the regulator's strict pricing caps, while coverage has expanded due to rulings by courts and regulators.

Many insurers in Brazil stopped selling individual health plans due to mounting losses, but Amil cannot cancel its existing portfolio.

Under one proposal, UnitedHealth offered to pay an investment firm $550 million to take over the individual insurance portfolio, but regulators blocked the deal.

Meanwhile, UnitedHealth has almost tripled its global revenue since acquiring Amil in 2012, to $290 billion last year, dwarfing its investment in Brazil. In addition to health plans, UnitedHealth runs pharmacy services, data analytics and medical practices.

($1 = 5.4039 reais)

(Reporting by Tatiana Bautzer; Editing by Caroline Humer, Brad Haynes and Sandra Maler)

By Tatiana Bautzer


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BANCO BRADESCO S.A. -0.81% 19.62 End-of-day quote.12.35%
DIAGNOSTICOS DA AMÉRICA S.A. 0.16% 19.25 Delayed Quote.-43.04%
EURO / BRAZILIAN REAL (EUR/BRL) -0.15% 5.1535 Delayed Quote.-19.59%
REDE D'OR SÃO LUIZ S.A. -4.29% 31.23 Delayed Quote.-27.21%
SUL AMÉRICA S.A. -3.28% 23.31 Delayed Quote.-12.33%
UNITEDHEALTH GROUP 0.00% 508.37 Delayed Quote.1.24%
All news about BANCO BRADESCO S.A.
09:48aBrazil central bank says a final interest hike was widely debated
RE
09/16Investment banks in Brazil focus on debt in the short term -Bradesco BBI
RE
09/15Banco Bradesco S A : Bradesco 2Q22 - Institutional Presentation
PU
09/09Brazil's Iguatemi buys rest of JK Iguatemi mall, launches share offering
RE
09/09Exclusive-Norway's Yara close to acquiring Brazil's Petrobras fertilizer unit
RE
09/02BANCO BRADESCO S.A. : Ex-dividend day for
FA
08/25Brazil government to investigate lenders for alleged credit card fraud
RE
08/25Brazil government to investigate lenders for alleged credit card fraud
RE
08/25Banco Bradesco S.A. agreed to acquire Ictineo Plataforma S.F.P.
CI
08/24Banco Bradesco S A : A strategic partnership between Bradesco and banco BV to form an inde..
PU
More news
Analyst Recommendations on BANCO BRADESCO S.A.
More recommendations
Financials
Sales 2022 121 B 22 572 M 22 572 M
Net income 2022 28 179 M 5 251 M 5 251 M
Net Debt 2022 - - -
P/E ratio 2022 7,34x
Yield 2022 5,92%
Capitalization 190 B 35 400 M 35 400 M
Capi. / Sales 2022 1,57x
Capi. / Sales 2023 1,44x
Nbr of Employees 88 129
Free-Float 62,8%
Chart BANCO BRADESCO S.A.
Duration : Period :
Banco Bradesco S.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BANCO BRADESCO S.A.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 15
Last Close Price 19,62 BRL
Average target price 24,54 BRL
Spread / Average Target 25,1%
EPS Revisions
Managers and Directors
Octávio de Lazari Chief Executive Officer
Luiz Carlos Trabuco Cappi Chairman
Samuel Monteiro dos Santos Independent Director
Walter Luis Bernardes Albertoni Independent Director
Paulo Roberto Simões da Cunha Independent Director
Sector and Competitors