Latest news with #Lima-based
Yahoo
10-06-2025
- Business
- Yahoo
UnitedHealth Group received multiple bids for Latin American operations
-- UnitedHealth Group (NYSE:UNH) is considering several offers for its Latin American operations, according to a Reuters report on Monday. The move comes as the largest U.S. health insurer faces challenges that include the departure of its CEO and an alleged criminal accounting investigation. The insurer has been attempting to leave Latin America since 2022, with the sale of its Banmedica subsidiary becoming more urgent in recent months due to increasing pressures on multiple fronts, the report said. So far, UnitedHealth has reportedly received four preliminary bids for Banmedica, which operates in Colombia and Chile, with an estimated value of about $1 billion. In May, UnitedHealth's shares dropped 25.5%, and the year-to-date decline stands at 40%. The company withdrew from Brazil in 2023 and from Peru in March 2025. It aims to secure around $1 billion for Banmedica's operations in Colombia and Chile. The company anticipates setting a deadline for final proposals as early as July. The bids reportedly include offers from Washington, D.C.-based private equity firm Acon Investments, Sao Paulo-based private equity firm Patria Investments, Texas non-profit health organization Christus Health, and Lima-based healthcare and insurance provider Auna. The report mentioned that Auna is currently in discussions with a financial partner. Related articles UnitedHealth Group received multiple bids for Latin American operations Tesla shares slip after double downgrade amid Trump feud fallout What are the three big things in markets now? RBC weighs in
Time of India
09-06-2025
- Business
- Time of India
UnitedHealth eyes $1 billion deal to exit Latin America as insurer refocuses on US, sources say
New York: UnitedHealth Group is weighing multiple bids for its Latin American operations, according to two people with direct knowledge of the matter, as the insurer buckles down after a series of unprecedented missteps that include the ouster of its CEO and a reported criminal accounting probe. The largest U.S. health insurer has been trying to exit Latin America since 2022, but the sale of Banmedica has taken on increasing urgency in recent months as the insurer took hits on multiple fronts, according to one of the people. New CEO Steve Hemsley told shareholders last week that he was determined to earn back their trust after an earnings miss and a Wall Street Journal report that the company was under criminal investigation for alleged Medicare fraud. UnitedHealth has said it was not notified by the Department of Justice and that it stands by the integrity of its operations. Hemsley replaced Andrew Witty just a few months after the murder of the executive Brian Thompson, the CEO of UnitedHealthcare, in New York in December while on his way to a meeting with investors. Witty had been UnitedHealth Group CEO since 2021. The company has four non-binding bids for its Banmedica subsidiary, which operates in Colombia and Chile, for about $1 billion, according to both people, who asked not to be identified because the talks are private. UnitedHealth's shares tumbled 25.5% in May alone and year-to-date are down 40%. UnitedHealth left Brazil in 2023 and Peru in March. It's aiming to get around $1 billion for Banmedica's operations in Colombia and Chile, the people said. The two people said the company expects to set a deadline for binding proposals as soon as July. UnitedHealth received bids from Washington, D.C.-based private equity firm Acon Investments; Sao Paulo-based private equity firm Patria Investments; Texas non-profit health firm Christus Health; and Lima-based healthcare and insurance provider Auna, the people said. Auna is in talks with a financial partner, one of the sources added. Banmedica's annual earnings before income taxes, depreciation and amortization, or EBITDA, are more than $200 million a year. Patria, UnitedHealth Group and Christus Health declined to comment. Acon and Auna did not respond to requests for comment. FAILED EXPANSION PLANS UnitedHealth bought Banmedica in 2018, with CEO David Wichmann saying he was "establishing a foundation for growth in South America for the next decades." At the time, UnitedHealth paid around 12 times Banmedica's EBITDA, according to one of the people. Three years later, the insurer decided to leave Latin America as it grappled with losses in its largest operation in the region, Brazil's Amil, which had been acquired a decade earlier. It divested from its Brazilian operations in late 2023. Banmedica is currently profitable, but is considered too small by UnitedHealth. It serves over 2.1 million consumers through its health insurance programs and has around 4 million patient visits annually across its network of 13 hospitals and 143 medical centers. UnitedHealth booked an $8.3 billion loss last year related to the sale of its South American operations - $7.1 billion stemming from the Brazil exit and $1.2 billion from Banmedica. "These losses relate to our strategic exit of South American markets and include significant losses related to foreign currency translation effects," the company said in a February filing. Brazilian investment bank BTG Pactual is advising UnitedHealth on the sale.
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Business Standard
09-06-2025
- Business
- Business Standard
UnitedHealth may sell Latin America arm for $1bn to refocus on US: Report
UnitedHealth Group is weighing multiple bids for its Latin American operations, according to two people with direct knowledge of the matter, as the insurer buckles down after a series of unprecedented missteps that include the ouster of its CEO and a reported criminal accounting probe. The largest US health insurer has been trying to exit Latin America since 2022, but the sale of Banmedica has taken on increasing urgency in recent months as the insurer took hits on multiple fronts, according to one of the people. New CEO Steve Hemsley told shareholders last week that he was determined to earn back their trust after an earnings miss and a Wall Street Journal report that the company was under criminal investigation for alleged Medicare fraud. UnitedHealth has said it was not notified by the Department of Justice and that it stands by the integrity of its operations. Hemsley replaced Andrew Witty just a few months after the murder of the executive Brian Thompson, the CEO of UnitedHealthcare, in New York in December while on his way to a meeting with investors. Witty had been UnitedHealth Group CEO since 2021. The company has four non-binding bids for its Banmedica subsidiary, which operates in Colombia and Chile, for about $1 billion, according to both people, who asked not to be identified because the talks are private. UnitedHealth's shares tumbled 25.5 per cent in May alone, and year-to-date are down 40 per cent. UnitedHealth left Brazil in 2023 and Peru in March. It's aiming to get around $1 billion for Banmedica's operations in Colombia and Chile, the people said. The two people said the company expects to set a deadline for binding proposals as soon as July. UnitedHealth received bids from: Acon Investments (Washington, D.C.-based private equity firm) Patria Investments (São Paulo-based private equity firm) Christus Health (Texas non-profit health firm) Auna (Lima-based healthcare and insurance provider, in talks with a financial partner) Banmedica's annual earnings before income taxes, depreciation and amortisation (EBITDA) is more than $200 million a year. Patria and Christus Health declined to comment. UnitedHealth, Acon, and Auna did not respond to requests for comment. UnitedHealth bought Banmedica in 2018, with then-CEO David Wichmann saying he was 'establishing a foundation for growth in South America for the next decades.' At the time, UnitedHealth paid around 12 times Banmedica's EBITDA, according to one of the people. Three years later, the insurer decided to leave Latin America as it grappled with losses in its largest operation in the region, Brazil's Amil, which had been acquired a decade earlier. It divested from its Brazilian operations in late 2023. Banmedica is currently profitable but is considered too small by UnitedHealth. It serves over 2.1 million consumers through its health insurance programs and handles around 4 million patient visits annually across its network of 13 hospitals and 143 medical centres. UnitedHealth booked an $8.3 billion loss last year related to the sale of its South American operations — $7.1 billion stemming from the Brazil exit and $1.2 billion from Banmedica. 'These losses relate to our strategic exit of South American markets and include significant losses related to foreign currency translation effects,' the company said in a February filing. Brazilian investment bank BTG Pactual is advising UnitedHealth on the sale.
Yahoo
09-06-2025
- Business
- Yahoo
Exclusive-UnitedHealth eyes $1 billion deal to exit Latin America as insurer refocuses on US, sources say
By Tatiana Bautzer and Sabrina Valle NEW YORK (Reuters) -UnitedHealth Group is weighing multiple bids for its Latin American operations, according to two people with direct knowledge of the matter, as the insurer buckles down after a series of unprecedented missteps that include the ouster of its CEO and a reported criminal accounting probe. The largest U.S. health insurer has been trying to exit Latin America since 2022, but the sale of Banmedica has taken on increasing urgency in recent months as the insurer took hits on multiple fronts, according to one of the people. New CEO Steve Hemsley told shareholders last week that he was determined to earn back their trust after an earnings miss and a Wall Street Journal report that the company was under criminal investigation for alleged Medicare fraud. UnitedHealth has said it was not notified by the Department of Justice and that it stands by the integrity of its operations. Hemsley replaced Andrew Witty as CEO, who had been in the post for only a matter of months following the murder of his predecessor, Brian Thompson, in New York in December while on his way to a meeting with investors. The company has four non-binding bids for its Banmedica subsidiary, which operates in Colombia and Chile, for about $1 billion, according to both people, who asked not to be identified because the talks are private. UnitedHealth's shares tumbled 25.5% in May alone and year-to-date are down 40%. UnitedHealth left Brazil in 2023 and Peru in March. It's aiming to get around $1 billion for Banmedica's operations in Colombia and Chile, the people said. The two people said the company expects to set a deadline for binding proposals as soon as July. UnitedHealth received bids from Washington, D.C.-based private equity firm Acon Investments; Sao Paulo-based private equity firm Patria Investments; Texas non-profit health firm Christus Health; and Lima-based healthcare and insurance provider Auna, the people said. Auna is in talks with a financial partner, one of the sources added. Banmedica's annual earnings before income taxes, depreciation and amortization, or EBITDA, is more than $200 million a year. Patria and Christus Health declined to comment. UnitedHealth, Acon and Auna did not respond to requests for comment. FAILED EXPANSION PLANS UnitedHealth bought Banmedica in 2018, with CEO David Scott saying he was "establishing a foundation for growth in South America for the next decades." At the time, UnitedHealth paid around 12 times Banmedica's EBITDA, according to one of the people. Three years later, the insurer decided to leave Latin America as it grappled with losses in its largest operation in the region, Brazil's Amil, which had been acquired a decade earlier. It divested from its Brazilian operations in late 2023. Banmedica is currently profitable, but is considered too small by UnitedHealth. It serves over 2.1 million consumers through its health insurance programs and has around 4 million patient visits annually across its network of 13 hospitals and 143 medical centers. UnitedHealth booked an $8.3 billion loss last year related to the sale of its South American operations - $7.1 billion stemming from the Brazil exit and $1.2 billion from Banmedica. "These losses relate to our strategic exit of South American markets and include significant losses related to foreign currency translation effects," the company said in a February filing. Brazilian investment bank BTG Pactual is advising UnitedHealth on the sale.
Japan Times
06-05-2025
- Politics
- Japan Times
Mining murders show Peru's struggles with illegal gold rush
Peru is assigning the military with the task of regaining control of a mineral-rich area of the country's northern highlands after 13 gold miner were kidnapped and murdered. Army troops who were previously supporting police in the province of Pataz will now take control of security, Peruvian President Dina Boluarte told reporters in Lima on Monday. Mining activity in the area will be suspended for 30 days. She spoke after 13 bodies were discovered in a mine shaft over the weekend as criminal groups step up a wave of terror over control of the precious metal in the area. The deceased were working as guards at a small mine that is a contractor to Compania Minera Poderosa, one of Peru's largest gold producers. At least 39 workers have been killed in recent years in Pataz, Lima-based Poderosa said Sunday in a statement. The massacre underscores authorities' struggles to respond to violent gangs tapping into an illegal gold boom at a time of record high prices. Violence has continued in Pataz even after a state of emergency was declared more than a year ago. While Peru is best known for its massive copper mines, it's also a significant gold producer. The case is another blow to the already-unpopular president and to the country's reputation as an investment destination. SNMPE, the association representing global producers such as BHP Group and Glencore, said the government has yet to even approve a plan to combat illegal mining, which also poses a threat to formal operations. "The kidnapping and murder of these workers demonstrates that illegal economies seek to intimidate Peruvian society and seize public and private property, such as formal mining concessions and operations,' SNMPE said in a statement late Sunday. Opposition lawmakers were collecting signatures Monday in a bid to remove Prime Minister Gustavo Adrianzen, who last week expressed doubts about whether the Poderosa contractors had really been kidnapped. It's unclear if that effort would garner enough support. The industry has been critical of a mechanism, called Reinfo, that is designed to allow artisanal miners to formalize their operations. The temporary registry has merely provided quasi-legal status that has helped to promote informal mining, industry representatives say. "Reinfo is used as a shield by illegal miners who now attack not only artisanal, small and medium-sized miners, but also large-scale mining,' SNMPE President Julia Torreblanca said in an interview with a local radio station. Some large mines in Peru have battled to have small-scale miners removed from their concession areas while others have opted to buy their ore. Late Monday, Poderosa was trying to confirm whether it was included in the mining suspension. "It would be foolish to halt operations of formal mines,' spokesman Pablo de la Flor said in text messages. "That's precisely what illegal mines want.' Violence in Pataz has been contained in the past, mitigating risk to the broader industry. Still, greater scrutiny is needed across the entire production chain as skyrocketing gold prices create a further incentive for illegal activities, according to BTG Pactual analyst Cesar Perez-Novoa, who specializes in natural resources. "Going forward, mining companies will likely bolster investments in armed security measures to counter organized criminal groups, potentially with international ties, that are illicitly extracting minerals for sale in international markets, circumventing established traceability protocols,' Perez-Novoa said.
