Recasts with SulAmerica confirming the agreement
SAO PAULO, December 30 (Reuters) – Brazilian insurer SulAmerica SA SULA11.SA has entered into an agreement to acquire 100% of Sompo Saude, a subsidiary of the Japanese Sompo Holdings Inc 8630.T in Brazil, he said in a securities deposit Thursday.
SulAmerica has agreed to pay 230 million reais ($ 40.33 million) for Sompo, according to the filing.
Sompo Saude currently has 116,000 customers in Brazil, mainly in the state of Sao Paulo, according to the buyer. SulAmerica said the move was part of a strategy to expand its local health and dental insurance business.
SulAmerica expects to get an additional 650 million reais per year in income from the acquisition, he said, adding that he also sees cost savings resulting from the transaction, without elaborating.
The deal still requires approval from Brazilian regulators, SulAmerica said.
NOTThe newspaper Valor Economico was the first to report on the acquisition.
($ 1 = 5.7032 reais)
(Reporting by Gabriel Araujo; editing by Jason Neely)
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