Insurer XL Group’s shareholders have approved an agreement for AXA to acquire 100 percent of XL Group.
Total consideration for the planned acquisition would amount to approximately USD $15.3 billion, to be fully paid in cash. Under the terms of the transaction, XL Group shareholders will receive USD $57.60 per share.
The transaction is expected to be completed during the second half of 2018 subject to customary closing conditions, including regulatory approvals.
“Becoming a part of AXA provides unrivaled opportunity to accelerate our strategy with new strength and dimension. Based on today’s vote, it is clear that our shareholders share this same vision and opportunity for XL Group,” said XL Group CEO Mike McGavick.
Upon completion of the transaction, the combined operations of XL Group, AXA Corporate Solutions (AXA’s large commercial P&C and specialty business) 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. Hendrick will report to AXA Group Chief Executive Officer Thomas Buberl.
Following the closing of the transaction, McGavick will become vice chairman of the combined P&C Commercial lines operations and special adviser to Buberl to advise on integration-related and other strategic matters.
XL Group provides both a specialty platform that will diversify AXA’s existing commercial lines insurance portfolio, as well as reinsurance capabilities that will allow AXA an access to alternative capital.
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