View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 31, 2021

Generali to launch €1.17bn buyout offer for rival Cattolica

By Verdict Staff

Italy-based Assicurazioni Generali has confirmed plans to launch a €1.17bn buyout offer for smaller rival Cattolica.

Generali, which already own a 24% stake in the company, now intend to acquire all the remaining shares.

Generali is offering investors €6.75 per share, which represents a premium of 15.3% over Cattolica’s closing price on 28 May 2021.

Generali, which made a €300m investment in Cattolica last year, aims to further strengthen its domestic market dominance through the latest buyout offer.

Warren Buffett’s Berkshire Hathaway is said to be the second-largest investor in Cattolica.

The board of directors of Assicurazioni Generali has unanimously approved the launch of a cash voluntary public tender offer on all of the ordinary shares of Cattolica.

The offer is seen as a move to prevent foreign insurers from growing in the Italian market.

It will also establish Generali as the country’s largest player in the non-life sector, pushing UnipolSAI to second place.

In December 2020, Italian lender Banco BPM decided to exercise a call option to acquire the 65% interest held by insurer Cattolica Assicurazioni in the joint-ventures (JVs) Vera Vita and Vera Assicurazione for €335.7m ($408m).

The change in control followed Generali’s acquisition of 24.4% of Cattolica.

Banco BPM said that the decision to terminate the insurance tie-up with Cattolica was triggered by Cattolica’s refusal to offer information on Generali’s investment despite repeated requests.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Life Insurance International