Old Mutual Wins Battle for Skandia

Old Mutual’s protracted efforts to acquire Skandia, Sweden’s largest insurer, has ended in success. The South African and U.K.-based company announced that it has declared the offer to acquire Skandia’s shares to be “unconditional,” which locks in the purchase of around 72.3 percent of Skandia shares that have been tendered during the offering period.

Old Mutual had recently extended the offering period until Feb. 9. It hopes ultimately to acquire at least 75 percent of the Swedish company’s shares. The offer values Skandia at approximately $6.9 billion.

Following the announcement, Skandia said it has been in consultation with Old Mutual, and that its Board “has decided that an extraordinary general meeting will be held on Tuesday, 21 February 2006, at 4.30 p.m.” The meeting will involve the election of a new board for Skandia.

Old Mutual indicated that the only remaining condition not yet fulfilled is the approval of the acquisition from the Polish regulatory authorities. It added, however, that it would waive this requirement, and that, even if the approval were not forthcoming, it would have only a minimal financial impact on the deal.