DES MOINES, Iowa -- Principal Financial Group Inc. said Monday that it is buying AFP Cuprum S.A., a pension manager in Chile, for roughly $1.51 billion.
Principal Financial said the deal will add to its existing business in Brazil, Chile and Mexico, to give the company an even larger presence in those emerging markets. The Des Moines, Iowa-based company provides retirement savings, investment and insurance products and services.
Under the deal, Empresas Penta S.A. and Inversiones Banpenta Limitada will sell their 63 percent ownership in Cuprum, pursuant to a public tender offer that will also include the remaining 37 percent of publicly traded shares.
The deal still needs regulatory approval from the Chilean government.
Cuprum has approximately $32.1 billion of assets under management. It oversees employee-funded pension plans, voluntary pension products and other long-term savings products.
Principal Financial said the acquisition is its sixth of its kind during the past two years.
Shares of Principal Financial closed Monday trading up a penny at $27.77. The stock added 2 cents in after-hours trading.