BNP Paribas, a French banking group, is looking to buy Fosun International’s stake in Ageas, reported Bloomberg, citing sources.
The potential deal involves Fosun’s roughly 10% interest in Belgian insurer Ageas, valued at approximately €750m as of 14 March, including stock and derivative holdings.
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The discussions between BNP Paribas and Fosun are at a preliminary stage and there is no guarantee that they will result in a definitive agreement.
Both BNP Paribas and Ageas have refused to comment on the matter, while Fosun too refrained from commenting.
Last month, reports emerged that Fosun, led by billionaire Guo Guangchang, hired advisers to explore the potential divesture of its minority stake in Ageas.
The Chinese conglomerate has been actively reducing its debt by divesting assets after an extensive period of global acquisitions.
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By GlobalDataFosun’s divestment strategy may involve block trades or negotiations with strategic and financial investors.
This news comes as BNP Paribas announced plans to return €20bn to its shareholders over the next three years, with CEO Jean-Laurent Bonnafe focusing on increasing cost savings.
Last month, the bank revised some of its 2025 performance targets, attributing the changes to various factors including the European Central Bank’s policy changes.
BNP Paribas reported a decrease in fourth-quarter profit, partly due to legal provisions.
The French bank’s interest in Ageas coincides with the latter’s ongoing efforts to acquire Direct Line Insurance Group, a UK-based insurer.
Direct Line recently rejected a second takeover bid from Ageas, with the board stating that the offer substantially undervalues the company and its future prospects.
The UK insurer also called the offer, which valued the company at around £3.2bn ($4.1bn), “highly opportunistic” and deemed the bid unattractive.
