AXA to Acquire XL Group for $15.3 Billion
By Nathan Allen
AXA SA (CS.FR) said Monday that it will acquire New York-listed insurance company XL Group Ltd. (XL) for $15.3 billion, bolstering the French group's operations in the property and casualty commercial lines sector.
Shareholders in XL will receive $57.60 a share, which represents a 33% premium to the company's closing price on March 2, AXA said.
The transaction is subject to approval from XL Group shareholders and relevant regulatory approvals, AXA said.
AXA said it will now accelerate plans for a public listing of its U.S. operation and other sell downs, as the acquisition will help offset any earnings dilution from these transactions.
AXA said it expects pretax earnings to be boosted by synergies of around $400 million a year.
XL Group's chief operating officer, Greg Hendrick, will become CEO of the combined entity, according to a statement from AXA.
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(END) Dow Jones Newswires
March 05, 2018 01:48 ET (06:48 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.