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March 24, 2022

Aegon divests Hungarian unit for €620m to VIG

Dutch insurance firm Aegon has completed the divesture of its Hungarian arm to Vienna Insurance Group (VIG) for €620m.

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The announcement comes after the European Commission ordered Hungary to withdraw its veto to block the deal.

The deal is part of Aegon’s November 2020 agreement to sell its insurance, pension, and asset management businesses in Central and Eastern Europe to VIG for €830m.

Aegon CEO Lard Friese said: “Today’s announcement marks an important step in the transformation of Aegon as we narrow our strategic focus to select core and growth markets, and further strengthen our balance sheet.”

Concurrently, Aegon announced a reduction of its debt through a €375m tender offer along with a €300m share buyback.

As per the agreement, VIG will acquire Aegon Hungary Holding B.V. and Aegon Hungary Holding II B.V., which hold a 100% stake in Aegon’s Hungarian arm.

The deal also includes the acquisition of a 45% stake in the Hungarian business of VIG Group by the Hungarian state holding firm Corvinus.

VIG CEO Elisabeth Stadler said: “With the closing in Hungary, we will achieve our target of being among the top three in the market by the end of 2025 already in 2022 and take over the market leadership in Hungary.

“We acquire very well-positioned companies that enrich our broad diversification and offer us new opportunities in asset management and pension fund business. These are two business areas that we want to intensify and expand as part of our ongoing strategy programme VIG 25,” explains.  

The divesture of Aegon’s operations in Poland, Romania and Turkey is yet to receive local regulatory approval. It expects the deal to close in 2022.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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