ACE to buy Chubb for $28.3 billion
Posté le 3 juil. 2015
Deal marks largest ever between two companies in insurance industry
Chubb shareholders will receive $62.93 per share in cash and 0.6019 ACE shares, equal to a 30% premium over Chubb’s closing price on Tuesday.
The deal will create a company with over $31 billion combined annual revenue. ACE earnings per share and book value are expected to be boosted by the deal, and $650 million savings will be generated. Even Greenberg, chief executive of ACE will lead the new company.
The acquisition will help ACE to get access to high-net-worth market where clients pay higher premiums and bulk up the company to compete with rivals including American International Group Inc. and Warren Buffett’s Berkshire Hathaway Inc. in a cutthroat business environment.
“We are thrilled to announce the acquisition of Chubb, a venerable company with a great brand,” Evan Greenberg said in a statement. “This transaction advances our strategy in a meaningful way and represents an outstanding opportunity to create significant value over a reasonable period of time for both Ace and Chubb shareholders.”
Chubb shares jumped by up to 29%, and ACE shares raised up to 3% in trading on Wednesday.
S.Z