Swiss insurance giant Zurich has agreed to buy rival Beazley for £8.1 billion after sweetening its bid for the takeover.
The companies said they had reached a deal that will create a global specialist insurance leader that’s based in the UK.
Under the terms of the deal, Beazley shareholders have been offered £13.35 per share, which it says represents a premium of around 59.8% to its closing price on January 16.
The deal means Beazley will be taken off the London Stock Exchange, where it currently lists its shares on the UK’s top index, the FTSE 100.
The pair have been locked in takeover talks since the start of the year, with Beazley rejecting previous approaches from its peer.
It rebuffed a £7.7 billion proposal, before agreeing to an £8 billion deal in principle last month and then extending the deadline to make a formal offer to March 4.
The agreement reached on Monday is for a takeover worth about £8.1 billion.
Zurich said the move will expand its market reach with a broader specialty product range and access to insurance marketplace Lloyd’s, particularly to expand into higher-growth sectors like infrastructure and technology.
Beazley is a specialist insurer, with a burgeoning cyber cover offering, as well as cover across professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.
Zurich has more than 63,000 employees and has its headquarters in Switzerland.
Mario Greco, Zurich’s chief executive, said: “Leveraging Beazley’s established Lloyd’s platform, the combined specialty business will be headquartered in London and will be a powerful platform for long-term growth in specialty lines.
“We are committed to championing underwriting excellence, retaining key talent and maintaining the Beazley brand within the broader Zurich Group.”
