The proposed acquisition of a controlling stake in local insurer Income Insurance by German insurer Allianz has been called off due to concerns over the deal's structure and potential impact on Income's social mission. The Singaporean government, after reviewing the transaction, decided it was not in the public interest to proceed with the deal in its current form.
Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income, in a deal that was valued at $2.2 billion.
“The Government has assessed the proposed transaction and has decided that it would not be in the public interest for the transaction, in its current form, to proceed,” he said. Mr Tong said the Government does not have concerns over Allianz’s standing or suitability to acquire a majority stake in Income.
The move to block the deal was made after the Monetary Authority of Singapore provided MCCY with new information about the proposed transaction following a Parliament sitting on Aug 6 during which the issue was debated. But Allianz’s proposed capital reduction runs counter to the premise on which the above exemption was given, Mr Tong said.
Allianz Income Insurance Singapore Deal Acquisition
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