Travelers Buys Stake in Brazil's J. Malucelli
NEW YORK (TheStreet) -- Travelers (TRV) - Get Report said it will acquire a 43% stake in Brazil insurer J. Malucelli for $370 million.
will invest in newly issued shares of J. Malucelli, which significantly boosts the Brazil surety insurance company's capital levels.
"This is a very significant opportunity for Travelers to leverage its leading U.S. surety franchise to enter the Brazilian market and to do so with a local market leader," Travelers Chairman and CEO Jay Fishman said in a statement.
As part of the joint venture agreement, Travelers has the option to up its stake to 49.9% within 18 months.
Travelers shares closed Wednesday at $55.91.
-- Written by Robert Holmes in Boston
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