UnitedHealth (UNH, Financial) is weighing bids to sell its loss-making Latin America arm as it grapples with rising costs and leadership turmoil.
Under review are four nonbinding offers for its Banmédica subsidiary—operating in Colombia and Chile—with UnitedHealth targeting roughly $1 billion for the carve-out. Bidders include private equity firms Acon Investments and Patria Investments, nonprofit Christus Health and Peru's Auna. The sale push dates back to 2022 after Banmédica posted over $8 billion in losses, and now carries added urgency amid a 40% UNH stock drop this year.
This divestiture follows a turbulent stretch: CEO Andrew Witty's abrupt May departure, suspension of 2025 guidance due to surging medical costs, and news of a DOJ probe into Medicare Advantage that sent shares down 18% in a single day. New CEO Steve Hemsley has pledged to rebuild trust and refocus on core U.S. operations. UnitedHealth expects binding proposals by next month, aiming to funnel sale proceeds toward shoring up its domestic business and easing capital pressures.
Why It Matters: Exiting Latin America would remove a division that's hemorrhaged cash, allowing UnitedHealth to prioritize its sizable U.S. footprint amid regulatory scrutiny and cost headwinds.
