Nordic $5 bln insurer M&A limits cross-border risk

Topdanmark A/S

17/06/2024 11:20

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
       LONDON, June 17 (Reuters Breakingviews) - Finland’s $21
bln Sampo is buying Danish rival Topdanmark. Overseas deals can
easily go awry, but Sampo is buying a group it already half-owns
and paying in shares. More importantly, the target’s current
valuation should make it possible for synergies to cover the
premium.
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    CONTEXT NEWS
    Finnish insurer Sampo has agreed to buy Topdanmark in an
all-share deal that values its Danish rival at 33 billion Danish
crowns ($4.7 billion), the two companies said on June 17.
    Sampo already owns 48.5% of the Danish property and casualty
(P&C) insurer, according to LSEG data.
    Based on June 14 closing share prices, the offer represents
a 27% premium for Topdanmark investors, the companies said in a
joint statement.
    The companies said they expect the acquisition to result in
annual cost savings of 65 million euros ($69.5 million) for the
merged group and a further 30 million euros in higher income per
year.
    Sampo said its offer was its “best and final” bid and that
it would not be improved.
    Shares in Topdanmark were up 21% by 0722 GMT on June 17.

 (Editing by George Hay and Oliver Taslic)
 ((For previous columns by the author, Reuters customers can
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