Italian insurance giant Generali said it will buy out an insurance joint venture from Czech group PPF, acquiring the 49 per cent of the company it does not already own for 2.5 billion euros ($3.7 billion).
Generali will buy 25 per cent of eastern European venture GPH by April 2013 and the remaining 24 per cent by April 2014, the insurer said in a statement.
GPH is one of the principle insurance groups in eastern and central Europe, present in 14 countries with 14 million customers. The region is Generali’s fourth-biggest market after Italy, France and Germany.
“This transaction eliminates all uncertainty over our development strategy in Central and Eastern Europe and the resources required from the Group to put it in place,” Generali group head Mario Greco was quoted as saying.
As part of the deal, GPH will sell its insurance operations in Russia, Ukraine, Belarus and Kazakhstan, in consumer finance insurance to PPF for 80 million euros, Generali said.
Milan, Jan 08, 2013 (AFP)