Zurich to Purchase 50% Stake in Spanish Bank’s Insurance and Pension Operations
Swiss insurer Zurich Financial Services Group said on Friday it had agreed to pay up to 900 million euros for half of the insurance and pension operations of Spanish bank Banco Sabadell SA.
The deal, worth the equivalent of 1.42 billion dollars, would propel Zurich to the position of second-biggest insurance group in Spain, said the Swiss insurer in a statement.
It would also include the establishment of a "long-term strategic distribution partnership".
The announcement was welcomed by the market, with the stock up 7.0 percent in late morning trade to 269.25 Swiss francs, outperforming a flat stock market, which was just up 0.30 percent.
Zurich's announcement came a day after it announced that it would not bid for Royal Bank of Scotland's insurance business, and that it would recommence on Friday its 2.2 billion Swiss franc share buyback programm.
Published on July 11, 2008
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