UnitedHealth Group (NYSE: UNH) has reportedly reached a $1 billion agreement to sell its remaining South American operation, Banmedica, to Brazilian private equity firm Patria Investments.
The move reflects the company's broader push to streamline operations and support its ongoing turnaround efforts under CEO Stephen Hemsley.
Citing people familiar with the negotiations, Reuters noted that the deal was signed on Saturday. A formal announcement is expected on Monday.
UnitedHealth began unwinding its Latin American footprint in 2022, a process that has included the sale of operations in Brazil and Peru.
Banmedica, which UnitedHealth co-owned for years, operates in Chile and Colombia. As of June, the business covered 1.7 million health insurance plan members and managed a network of seven hospitals and 47 medical centers.
Talks surrounding the Banmedica divestment have been underway for nearly a year as UnitedHealth balanced valuation expectations and regulatory considerations across multiple jurisdictions.
The transaction also eliminates another distraction for Hemsley, who returned to the CEO role in May after previously leading the company from 2006 to 2017.
His comeback followed a series of crises that strained investor confidence, including the murder of a senior executive, higher medical costs, and renewed scrutiny from federal investigators.
Banmedica was acquired in 2018 as part of UnitedHealth’s plan to expand across South America. Then, CEO David Wichmann touted the deal as a foundation for decades of growth. However, financial challenges led the company to reverse.
UnitedHealth previously exited Brazil in late 2023 and Peru earlier this year.
UnitedHealth recorded an $8.3 billion loss tied to its South American operations—$7.1 billion from Brazil and $1.2 billion from Banmedica.
In October, the UK division of UnitedHealth’s Optum, which operates the electronic patient record system EMIS used by most British general practitioners(GPs), is attracting private equity interest just two years after its acquisition.
Sources familiar with the matter told Sky News that Blackstone Inc. (NYSE: BX) is among the potential bidders exploring a purchase of Optum's UK business.
Price Action: UNH stock is down 0.66% at $327.61 during the premarket session at the last check on Monday.