Insurer Ageas offers billions to British competitor

The Belgian insurer Ageas offers 3.6 billion euros for the British Direct Line.

This is reported by De Tijd.

This would be the largest acquisition in Ageas’ history.

It is remarkable that Ageas has chosen to expand in the UK. The group is already active there as a car, home and accident insurer, but in recent years the country has been known as Ageas’ problem child.

Ageas wants to go far to acquire the UK’s second largest car insurer. It wants to put on the table the equivalent of 3.6 billion euros in cash and new shares to be issued for Direct Line. That price amounts to approximately half of Ageas’s full market value. Direct Line has a market value of three billion euros.

Whether Ageas will effectively get its hands on its British prey remains to be seen. Direct Line said on Wednesday it would not accept the offer. “The board of directors considers the offer uncertain and unattractive”, it said. “Direct Line and the group’s prospects are significantly undervalued.”

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