Zurich Nears Beazley Takeover with £8B Bid

Key Takeover Proposal

Zurich Insurance has made a sweetened £8 billion ($10.97 billion) takeover proposal for UK speciality insurer Beazley. The Beazley board has stated it would recommend the offer to shareholders once it becomes a firm bid.

Offer Details and Timeline

The improved proposal values Beazley at up to 1,335 pence per share, including 1,310 pence in cash and up to 25 pence in dividends. This follows Beazley's rejection of previous lower offers. Zurich has until February 16 to make a formal offer under UK takeover rules.

Market Reaction and Rationale

Beazley's shares surged 9% to a record 1,265 pence on the news. The acquisition would strengthen Zurich's position in speciality insurance sectors such as cyber and marine. It also expands its footprint in the UK, a market seen as attractive for foreign takeovers due to lower valuations.

Summary

Zurich will now conduct due diligence before presenting a formal offer. This move is part of a larger trend of overseas companies acquiring London-listed firms.

FAQ

Q: What is Zurich's new offer for Beazley?
A: The offer is for up to 1,335 pence per share, valuing the company at approximately £8 billion.

Q: How did Beazley's stock react?
A: Its shares jumped 9 percent to a record high of 1,265 pence following the announcement.

Source: Investing.com