Posted on 28 Sep 2010
According to an article in the Wall Street Journal, citing sources familiar with the matter, Prudential Financial Inc. (PRU) is set to announce a deal as soon as Thursday to buy two Japanese life-insurance units from American International Group Inc. (AIG) for a combined $4.8 billion.
This deal comes after Prudential broke off an earlier round of discussions with AIG over the same two units last year and is a culmination of months of negotiation. Prudential will pay part of the purchase price in cash.
AIG Star Life Insurance Co. and AIG Edison Life Insurance Co. are being sold by AIG as part of the insurer's effort to repay taxpayers after receiving government funding to prevent it from collapsing amid the depths of the financial crisis.
Prudential Financial, based in Newark, New Jersey, is not related to the U.K.'s Prudential PLC, and has significant operations in Japan. Prudential derives about 40% of its operating earnings from its international units, with Japan the biggest contributor.