AXA buys Winterthur for US$9.98 billion

AXA has agreed to buy Winterthur from the Credit Suisse Group for CHF 12.3 billion (US$9.98 billion), to be paid in cash.
In addition, AXA will refinance CHF 1.6 billion (US$1.3 billion) of Winterthur’s outstanding debt, of which CHF 1.1 billion (US$893,000) of internal loans is to be redeemed to Credit Suisse Group at closing.
“This transaction is a unique opportunity to reinforce our leading position in our core European market and to increase our presence in high growth markets, notably in Central and Eastern Europe and in Asia,” according to AXA Group CEO Henri de Castries.
“The complementarity of our organizations and the strong cultural fit between our teams will facilitate the integration of Winterthur and will drive value creation for our shareholders,” de Castries said in a press release. “I am confident that the combined efforts of AXA and Winterthur’s many talented and dedicated professionals will very positively contribute to our company growth, on top of our existing Ambition 2012 target.”
Winterthur is active in 17 countries and serves 13 million clients worldwide. It is one of the top 10 composite insurers in Europe with a leading position in Switzerland and a strong presence in Germany, Spain, Benelux and the U.K.
Winterthur’s portfolio is balanced between life and savings (62% of insurance revenues) and property and casualty business (38% of insurance revenues).