Liberty Mutual Group today reaffirmed its commitment to close its previously announced acquisition of Safeco Corp. by the end of the third quarter of 2008, subject to receipt of Safeco shareholder approval and applicable regulatory approvals.
Under the terms of the merger agreement, Liberty Mutual will acquire all outstanding shares of common stock of Safeco for $68.25 per share in cash. The transaction is not subject to financing contingencies.
The period during which federal officials might raise antitrust concerns over the proposed acquisition has expired.
The deal has been approved by the boards of directors of both companies.
Currently, Liberty Mutual Group is the sixth largest property and casualty insurer in the United States based on the company’s 2007 direct written premium of $20.2 billion, while Safeco had 2007 direct written premium of $5.9 billion.
Following the transaction, Safeco will become part of Liberty Mutual Group’s Agency Markets business unit. Liberty Mutual Agency Markets had revenues of $5.6 billion in 2007. Combined, the organization will have about 15,000 independent agencies.
Source: Liberty Mutual Group