CNP Assurances has signed a strategic agreement with Embracon to create a major player in Brazil's rapidly growing Consórcio market, aiming to enhance financial inclusion and distribution capabilities.

Target Information

CNP Assurances, a well-established player in the Brazilian insurance market, has announced an agreement with Embracon aiming to consolidate their operations in the Consórcio segment, a local alternative to traditional credit. This strategic collaboration seeks to create a major entity in a rapidly growing market.

The proposed transaction will involve the contribution of CNP Consórcio to Embracon, followed by a share acquisition by CNP Assurances. Upon completion of these operations, Embracon will be owned 40% by CNP Assurances and 60% by its founders.

Industry Overview in Brazil

The Consórcio model has gained significant traction in Brazil as an appealing financing option, providing individuals with a way to purchase goods and services through shared savings. This