The merger between financial groups BICECORP and Grupo Security is getting closer to becoming a reality. The most recent milestone was the approval from the National Economic Prosecutor’s Office (FNE), one of Chile’s entities overseeing competition matters. With this, the companies are now awaiting the green light from the Financial Market Commission (CMF) to kickstart their Public Tender Offer (OPA).
According to a statement, the FNE released its report on the merger, approving the integration of both financial groups—which operate in banking, investments, and insurance—without conditions. This means the companies are not required to implement any mitigation measures.
In their public statement, the groups described the approval from the Prosecutor’s Office as “a very important step in the regulatory stages required for the integration of both entities.”
The next key event is the CMF’s approval, which is currently reviewing the integration operation. Once the regulator gives its approval, BICE and Security will announce the next steps, including the specifics of the OPA that will finalize the transaction.
Both firms emphasize that their merger is a “unique project” in the Chilean financial market. “We are convinced that this union will add value and bring significant benefits to our clients, which will translate into a greater product offering with excellent service that complements the financial solutions we provide, helping us continue to be a driving force for the country’s development and its business system,” they stated in the press release.
They further stressed that the integration “will position the new entity as a significant player in terms of loan volume, fund management, and insurance in Chile.”
In the asset management business, BICE and Security are primarily focused on mutual funds. Data from the Mutual Fund Managers Association (AAFM), which includes figures across all strategy categories as of last Friday, shows that BICE manages 4.459 trillion Chilean pesos (4.827 billion USD), while Security manages 3.254 trillion Chilean pesos (3.523 billion USD).
Both financial groups announced their merger earlier this year. At the time, they projected that the resulting company would have a total economic value estimated at 3.13 billion USD, with total assets of 37 billion USD and more than 2.4 million clients.
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