Key Takeaways
- UnitedHealth Group announced it will sell its Brazilian operations to a private investor.
- Details of the deal were not disclosed, but an earlier report indicated that Brazilian entrepreneur Jose Seripieri Filho was the buyer.
- UnitedHealth expects the transaction to close in the first half of next year, and it will take a charge of approximately $7 billion when that happens.
UnitedHealth Group (UNH) shares were up slightly after the big health insurance provider said it has agreed to sell its operations in Brazil to a private investor.
Terms of the agreement and the name of the buyer were not disclosed, although an earlier report by Reuters said the purchaser was Brazilian entrepreneur Jose Seripieri Filho. The company said it expects the transaction to close in the first half of next year.
UnitedHealth indicated in a securities filing that upon completion of the deal, it would be taking an approximately $7 billion charge, “the majority of which is non-cash and due to the cumulative impact of foreign currency translation losses.”
It noted that the charge would be excluded from adjusted earnings. However, it would impact net earnings.
Shares of UnitedHealth Group hit an all-time high at the end of November before losing ground this month, but they remain in positive territory for the year.
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