2 godzin temu
Zurich Insurance has publicly proposed a £7.7 billion takeover of London-listed rival Beazley, triggering a record surge in Beazley's share price. The bold move by the Swiss insurer follows an earlier undisclosed offer and could create a global specialty insurance powerhouse.
Beazley's shares soared 42% in afternoon trading on Monday, hitting an all-time high and pushing the company's market capitalisation to nearly £7 billion. The proposed offer of £12.80 per share represents a 56% premium on Beazley's closing price on January 16, before the public announcement.
The deal comes after Zurich made an earlier, private approach on January 4 at £12.30 per share. Under UK Takeover Panel rules, Zurich now faces a February 16 deadline to either make a formal offer or withdraw from the pursuit of the FTSE 100 specialist insurer.
Strategic Vision
Zurich argues the acquisition would deliver immediate value to Beazley shareholders beyond what the company could achieve independently. «This combination of two highly complementary businesses would establish a leading global specialty platform, based in the UK which would also leverage Beazley's Lloyd's of London presence,» Zurich stated.
The transaction would create a global leader in specialty insurance with around $15 billion (£11.2 billion) in combined gross written premiums. Zurich emphasized the deal «provides Beazley shareholders immediate and certain cash value for their investment at a level that exceeds what Beazley could achieve over a reasonable timeframe through the execution of its strategy».
The merged entity would combine exceptional data availability, underwriting expertise, leading market and distribution capabilities, and advanced reinsurance and technology infrastructures. Zurich, which employs more than 63,000 people from its Swiss headquarters, plans to fund the acquisition using existing cash, debt facilities, and an equity placing.
Note: This article was created with Artificial Intelligence (AI).
