MetLife Inc. (MET), the largest U.S. life insurer, agreed to buy Chilean pension manager AFP Provida SA (PROVIDA) from Banco Bilbao Vizcaya Argentaria SA (BBVA) in a deal valued at about $2 billion to add fee income in Latin America.
MetLife will conduct a public cash tender offer for all of the outstanding shares of Provida, the insurer said in a statement. BBVA has agreed to transfer its 64.3 percent stake to MetLife, according to the statement.
MetLife is expanding in faster-growing markets with the Provida deal, after acquiring American Life Insurance Co. in 2010 to build operations in Asia and Europe. Chief Executive Officer Steven Kandarian has set a goal of generating at least 20 percent of operating earnings from emerging markets by 2016 as he targets return on equity of 12 percent or more.
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