BBVA IS WILLING TO SELL THEIR PENSION BUSINESS PER COUNTRY
The original idea of the Spaniard company was to sell the entire operation to one company, but this could be changing in the next few days.
The executives of the bank saw that there were a lot of companies interested in the assets of the pension fund business per country, but not as a whole. The pension fund business that the BBVA is selling, are located in Mexico, Colombia, Peru and Chile.
The economic groups that have been asking for the assets always ask for the regional business that has a direct impact in their specific market, due to the unwillingness to buy assets in other countries with different markets and that could represent an expansion in the region with higher costs in the direct operation and in the daily bases operations.
In response to this potential decision to sell in parts the pension fund business, already appeared international players like Metlife, Prudential, Carlos Slim, Banorte and Luksic, Corpbanca and Principal.
The problem to sell all the operations in block is that the price is to high for one company to assume all this risk and all this investment, due to the intention of the BBVA to get 5.000 million dollars. But if they decide to sell per parts in a regional basis they could get a better deal.
In contrast with the decision of the BBVA to sell the Pension Fund Business, the banking business is still in expansion. The Spaniard bank open its first subsidy in Taiwan and is expecting to open a few more because according to the president of the bank, the crisis is an opportunity to win market share in locations where did not have operations before. In Colombia the bank also opened a few new subsidiaries and is planning to implement a new aggressive marketing strategy.