Suramericana $614 million acquisition of Royal & Sun Alliance Latin America business

Overview:

• Medellín-based Suramericana has acquired Royal & Sun Alliance's (RSA) businesses in Argentina, Brazil, Chile, Colombia, Mexico and Uruguay for $614 million.
• RSA undertook the deal in order to focus on its more profitable assets in the UK, Ireland, Scandinavia and Canada.
• The sale will allow Suramericana to expand its presence in the region and enter the Mexican and Brazilian markets, where it previously had no presence.
• “If you want to say that you have a regional business in Latin America, you must be in Brazil. That would represent at least 50% of the whole regional market,” said Demarest Advogados partner Gabriel Kuznietz when asked about Suramericana's motives. Kuznietz also points out that the deal could signify a larger trend of regional Latin American corporations investing in local countries highlighting Bradesco’s acquisition of HSBC’s Brazilian assets as an example.

Rani Mehta - Journalist