Allianz Group has acquired an additional 29.43% stake in the France-based trade credit insurer Euler Hermes for €1.5bn.
With the latest acquisition, Allianz’s shareholding in Euler Hermes has increased to 92.43%. The deal will boost its position in property and casualty market.
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Allianz launched the tender offer to acquire the remaining shares of Euler Hermes it did not own on 15 January 2018.
Allianz said: “Including the purchase of shares prior to the launch of the tender offer, Allianz has acquired an additional 29.43% of Euler Hermes share capital, representing a total investment of approximately €1.5bn ($1.48bn).”
The Germany-based insurer believes that the transaction will be immediately earnings-per-share (EPS) accretive.
Euler Hermes offers a wide variety of bonding, guarantees and collections services for the management of business-to-business trade receivables.
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By GlobalDataThe group posted a consolidated turnover of €2.56bn in 2017. It reported net income of €315.4m for the year 2017, an increase of 10% compared to €287m a year ago.
