FERRERE advised Grupo Itaú on the process of authorization by the local competition regulator for acquisition of control (100% of the corporate capital) of Providencia Sociedad Anónima de Seguros, an insurer operating in Paraguay.
As a result, Grupo Itaú will be positioned to develop a new area of operations within the insurance sector, geared to providing new products related to the financial instruments it currently offers its clients in Paraguay. Moreover, Grupo Itaú’s experience in the bancassurance model in its operations in other jurisdictions will not only benefit its clients by facilitating access to the insurance sector, but will also benefit the insurance market in Paraguay by developing its growth potential within the segment of clients assisted by Grupo Itaú in Paraguay.
The economic analysis of the bancassurance model in Paraguay, as well as its approach taking into consideration the efficiencies deriving from the model to be implemented post-transaction, led to obtaining unconditional authorization for the transaction.
The transaction was authorized by the competition regulator on October 25, 2021.
FERRERE’s advice covered issues relating to competition - led by partner Verónica Franco and associate Fernanda Benítez - as well as to finance – headed by partner Carlos Codas and associate Claudia Arietti.