CNP Assurances Acquires Majority Stake in Pan Seguros and Pan Corretora

Cleary Gottlieb represented CNP Assurances in the acquisition by the French insurance company CNP Assurances of BTG Pactual’s 51 percent stake in each of Pan Seguros, a Brazilian insurance company, and Panamericano Administração e Corretagem de Seguros e de Previdência Privada (Pan Corretora), a Brazilian insurance broker.

Caixa Economica Federal holds the remaining 49 percent of each company indirectly.  If the acquisition closes, this would be the second partnership between CNP Assurances and Caixa Economica Federal in the Brazilian insurance market. Pan Seguros also has a long-term exclusive distribution agreement with Banco Pan, a Brazilian retail bank co-owned by Banco BTG Pactual and Caixa Economica Federal.

At closing, CNP Assurances is expected to pay, for the two stakes combined, R$700 million, subject to certain adjustments based on the financial performance of the target companies through closing.  The closing of the transaction is subject to certain conditions precedent, including regulatory and antitrust approvals.