BNP Paribas SA is considering a potential acquisition of Fosun International Ltd.’s stake in Belgian insurer Ageas, according to people with knowledge of the matter.
The French lender has been holding discussions on a possible purchase of Fosun’s holding in Ageas, said the people, who asked not to be identified because the information is private.
Fosun has about a 10% interest in Ageas valued at roughly €750 million ($816 million) based on Thursday’s closing price, according to a regulatory filing. The figure includes its stock ownership as well as derivative holdings.
The deliberations are ongoing and there’s no certainty they will lead to a transaction, the people said. Representatives for BNP and Ageas declined to comment. Fosun didn’t respond to requests for comment.
Bloomberg News reported last month that Fosun has been working with advisers to explore a sale of its Ageas stake. The Chinese conglomerate, which is backed by billionaire Guo Guangchang, has been accelerating a divestment push as it seeks to cut its debt load following a global acquisition spree.
BNP Paribas’s interest comes days after it pledged to return €20 billion to investors over three years as Chief Executive Officer Jean-Laurent Bonnafe steps up cost savings. BNP last month lowered some performance targets for 2025, citing factors including the European Central Bank’s end to payments on reserves, and booked a slump in fourth-quarter profit driven partly by legal provisions.
The French lender’s potential move comes as Ageas pushes ahead with a contentious pursuit of a takeover of London-listed Direct Line Insurance Group Plc. The UK insurer said this week it had rejected a second takeover offer from Ageas valuing it at about £3.2 billion ($4.1 billion).
That prompted Direct Line’s share to fall, with Jefferies analyst James Pearse saying the prospects of an offer topping £3.5 billion now receding.
Shares of Ageas are little changed in Brussels trading this year, giving the company a market value of about €7.4 billion.
Photograph of BNP Paribas sign taken by ason Alden/Bloomberg
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