Banmedica is the South American unit of UnitedHealth Group, operating in Colombia and Chile.

Who is buying Banmedica from UnitedHealth?

Patria Investments, a private equity group, is acquiring Banmedica from UnitedHealth Group.

Why is UnitedHealth selling its South American unit?

UnitedHealth is divesting Banmedica as part of a strategic exit from the Latin American market and to focus on restructuring measures.

Home / Business and Economy / UnitedHealth Sheds $1B South America Unit

UnitedHealth Sheds $1B South America Unit

2 Dec

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Summary

UnitedHealth Group divested its South American unit, Banmedica.
The sale to Patria Investments is valued at $1 billion.
This divestment marks UnitedHealth's exit from Latin America.

UnitedHealth Sheds $1B South America Unit

UnitedHealth Group is set to divest its South American operations, Banmedica, for a substantial $1 billion to Patria Investments. This transaction marks the final step in the company's strategic exit from the Latin American market, having previously sold off its Brazilian and Peruvian businesses.

Banmedica, which operates in Colombia and Chile, served approximately 1.7 million members and managed a network of healthcare facilities. UnitedHealth recorded significant losses last year, partly attributed to its Latin American operations, making this divestment crucial for financial recovery.

The sale aligns with UnitedHealth's broader restructuring initiatives under CEO Stephen Hemsley, who recently resumed leadership. The company is focusing on stabilizing its performance and pursuing accelerated expansion in the coming years, indicated by an increased profit forecast.