Axa SA To Acquire XL Group In US$15.3 Bln Deal

(RTTNews) - Axa SA (AXAHY.PK) said Monday that it agreed to acquire XL Group Ltd (XL), a global Property & Casualty commercial lines insurer for total consideration of US$15.3 billion or 12.4 billion euros in cash.

The merger agreement has been unanimously approved by the boards of AXA and XL Group.

As per the terms of the transaction, XL Group shareholders will receive US$57.60 per share. This represents a premium of 33% to XL Group closing share price on March 2, 2018.

AXA noted that the strong complementarities between AXA and XL Group provides opportunities for significant value creation, offsetting the planned US IPO earnings dilution as soon as 2018. It also allows for material capital diversification benefits under the Solvency II framework and a strong return on investment. In this context, AXA also reaffirmed its Ambition 2020 targets.

Upon completion of the transaction, the combined operations of XL Group, AXA Corporate Solutions and AXA Art will be led by Greg Hendrick, currently the President and Chief Operating Officer of XL Group, who will be appointed CEO of the combined entity and join AXA Group's management committee, reporting to Thomas Buberl.

Greg Hendrick will work closely with Doina Palici-Chehab, AXA Corporate Solutions' Executive Chairwoman, and Rob Brown, AXA Corporate Solutions' CEO, to build an integrated organization and leadership team for this new company. Following the closing, Mike McGavick, XL Group's current CEO, will become Vice-Chairman of the combined P&C Commercial lines operations and special adviser to Thomas Buberl, AXA Group CEO, to advise on integration-related and other strategic matters.

Completion of the transaction is subject to approval by XL Group shareholders and other customary closing conditions, including the receipt of required regulatory approvals, and is expected to take place during the second half of 2018.