US-based life insurer MetLife has inked a definitive agreement to purchase BBVA’s private pension fund administrator in Chile, AFP Provida (Provida), in a deal valued at almost $2bn.

Based on the terms of the deal, the acquirer will perform a public cash tender offer for all of the outstanding shares of Provida, while BBVA has agreed to transfer its 64.3% stake to MetLife.

The current sale of Provida’s Chilean operation will not affect its other businesses in Mexico and Peru, which are not being purchased by MetLife.

The transaction, which also includes acquisition of a small asset management business in Ecuador, will enable the US underwriter to focus on growth opportunities in emerging markets.

Pending receipt of certain regulatory approvals and other customary closing conditions, the transaction is likely to complete during the third quarter of 2013.

As of 30 September2012, Provida had $45.3bn in assets under management and 1.8 million contributors, both of which are the most in the Chilean pension industry.

BofA Merrill Lynch provided financial advice to the acquirer, while Skadden, Arps, Slate, Meagher & Flom and Prieto y Cia served as legal advisors.

Operating through its subsidiaries and affiliates in the US, Japan, Latin America, Asia, Europe and the Middle East, MetLife offers insurance, annuities and employee benefit programs, to 90 million customers.