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Brazil : BRAZILIAN ITAU UNIBANCO signs negotiation agreement to offload its insurance unit

July 3, 2014

Brazilian ItaÚ Unibanco signed an negotiation agreement to offload its high-risk insurance unit, as part of a strategy to cut down on non-core business and use the proceedings to boost banking operations.

Negotiations are at an advanced stage and on the understanding that the questions are still pending. ItaÚ Unibanco expects to sign the agreement with the potential acquirer.

ItaÚ's major risk insurance unit specializes in offering coverage for giant corporate projects in sectors such as oil and gas and infrastructure. The deal may fetch BRL 1 billion ($450 million) for the Brazilian bank.

The company is expected to retain its retail and personal insurance business, as they provide stable revenues and higher returns.

ItaÚ informed BM & FBOVESPA S.A. Securities, Commodities and Futures Exchange about it's plans to sell its major risk insurance operation.

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Source: TendersInfo (India)

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