RSA insurance group has allegedly entered into talks with Canadian insurer Intact Financial and Danish insurer Tryg regarding the possibility of a takeover valued at £7.2bn.
According to the BBC, if the deal goes ahead it will be the biggest purchase of a UK-listed company in 2020, with Tryg rumored to pay RSA £4.2bn, and Intact contributing the remaining £3bn.
It is believed under the rules of the deal Intact and Tryg would divide RSA’s international branches with Intact keeping its Canada and UK operations, and the Danish group controlling RSA’s Sweden and Norway firms.
Back in April RSA had trouble “cancelling its dividend” following debates with the Prudential Regulation Authority as the Covid-19 crisis worsened in the UK.
It follows news that the company, which has operated for more than 300 years. began working with recruiters to replace current chair Martin Scicluna, after he announced his intention to step down.
RSA told the BBC: “The board of RSA has indicated to the consortium that it would be minded to recommend the proposal, subject to satisfactory resolution of the other terms of the possible offer, including a period of due diligence.”
Reports suggest the two insurance groups have until 3 December to make an official offer.
Insurance wire has contacted RSA for a comment.