MENA & GCC: Fosun reportedly in talks to buy RSA's Middle East business
Source: Middle East Insurance Review | Nov 2015
Chinese conglomerate Fosun International is in advanced discussions to acquire RSA Insurance Group’s Middle East business, Bloomberg reported, citing people familiar with the matter.
The sale could fetch less than US$200 million, the sources said, asking not to be identified as the information is private, reported Bloomberg. The Chinese firm’s bid higher than some other suitors, though talks could still be delayed or fall apart, another source said.
This would be Fosun’s second deal in the Middle East, following its $476 million purchase of a controlling stake in Israeli insurer Phoenix Holdings announced in June. Fosun has spent $5.7 billion acquiring insurance assets around the world in the past two years, data compiled by Bloomberg shows.
RSA, which was in talks for a takeover by Zurich Insurance Group before these were ended by the Swiss insurer in September, has been cutting costs and selling assets to bolster its balance sheet. The UK insurer has agreed to sell its Latin American operations to Suramericana for about GBP403 million ($616 million) in cash.
In the Middle East, RSA operates in Saudi Arabia, the UAE, Bahrain and Oman.
GBP1 = US$1.53