British insurer Standard Life announced on wednesday that the Chinese Regulators are in the final stages of approving a business combination whereby Bank of China would take a majority stake in Heng An Standard Life, a 50/50 joint venture partnership between Standard Life and Teda International.
The company would then become a domestic insurance company. The commercial details, together with any further approvals required, are now being discussed between the parties.
Bank of China has excellent distribution strengths and there continues to be significant growth potential across the fast developing life insurance industry in China. On successful conclusion of the negotiations Standard Life expect to establish a strong strategic and value enhancing partnership between Standard Life, Teda International and Bank of China. A further announcement will be made.
The deal, which would give Standard Life a smaller stake in a larger business, would, if approved, boost its distribution reach and turn the venture.
“The commercial details, together with any further approvals required, are now being discussed between the parties,” Standard Life said in a statement.
The insurer declined to comment on the value of a deal and on timing of a final decision by regulators.
Heng An Standard Life, set up in 2003, is among the top five joint venture insurers in China.
