Fosun sells Ageas shareholding in €730m deal to BNP Paribas
BNP Paribas, through its insurance subsidiary BNP Paribas Cardif, has signed an agreement to acquire Fosun Group’s stake of approximately 9% in Ageas for a total consideration of approximately €730 million ($778 million).
The Belgian-French multinational insurer Ageas and BNP Paribas have been partners for many years via the joint shareholding of Ageas (75%) and BNP Paribas Fortis (25%) in AG Insurance and with BNP Paribas Fortis being a long-standing distribution partner to the group’s Belgian insurance activities.
In response to the acquisition, Ageas said it was “pleased to see that BNP Paribas recognises, through this investment, the value of its partnership for the long term and the potential of the company going forward.”
The transaction comes shortly after Ageas abandoned its pursuit of a takeover of UK rival Direct Line after two rejections. Ageas submitted its initial bid in mid-January, a development which went public only at the end-February. Direct Line deemed Ageas’ offer “to be uncertain, unattractive, and that it significantly undervalued Direct Line Group and its future prospects while also being highly opportunistic in nature”.
BNP Paribas Group, through BNP Paribas Fortis, benefits from a partnership with Ageas and an exclusive distribution agreement for life and non-life insurance.
BNP Paribas said its acquisition of a minority stake in Ageas does not modify any term of this historic and strategic partnership.
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