The Brazilian arm of Zurich Financial Services has acquired two insurance companies from Banco Mercantil do Brasil.
In a US$180 million deal that closed on 16 July, Zurich took an 88 per cent stake in Companhia de Seguros Minas Brasil, as well as buying Minas Brasil Seguradora Vida e Previdência outright.
Nei Schilling Zelmanovits, a partner with Machado, Meyer, Sendacz e Opice Advogados who represented Banco Mercantil, says “the most challenging aspect of the transaction was to negotiate the bank assurance agreement, given that we don’t have many precedents here and the companies involved in the negotiation have different cultures and experiences.”
Under the 20-year agreement, Banco Mercantil will continue to sell insurance on behalf of the two companies in return for two US$30 million payments, one due immediately and the other in 15 years.
In light of the complex nature of the transaction, Botelho, Spagnol Advogados gave the bank additional tax counsel.
The deal is still subject to approval from Brazil’s insurance regulator, Superintendência de Seguros Privados.
Counsel to Zurich Financial Services
Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
Partner Marcelo Mansur Haddad and associates Rodrigo Nascimento and Paula Cury de Mattos
Counsel to Banco Mercantil do Brasil
Machado, Meyer, Sendacz e Opice Advogados
Partner Nei Schilling Zelmanovits and associates Thais de Gobbi and Rogério Cardoso Guimarães
Botelho, Spagnol Advogados
Partners Roberto Salles and Rafael Couto
(Latin Lawyer online 25.07.2008)