Zurich Financial buys 50% stake in Banco Sabadell
The Swiss insurer said Friday it has bought a 50 percent stake in the insurance business of Spain's Banco de Sabadell for at least CHF 1.21 billion.11 July 2008
ZURICH - Swiss insurer Zurich Financial Services AG said Friday it has bought a 50 percent stake in the insurance business of Spain's Banco de Sabadell for at least EUR 750 million (CHF 1.21 billion).
Zurich said the transaction makes it the second largest insurance company in Spain, which it described as one of the most attractive insurance markets in Europe.
The deal for a 50 percent share of the life insurance and pension activities at Spain's fourth largest bank was for EUR 650 million. It purchased a similar stake in Sabadell's general insurance for EUR 100 million.
Further costs of EUR150 million are tied to the success of the deal.
On Thursday, Zurich pulled out of the bidding for the Royal Bank of Scotland's insurance business, after being considered a favourite.
[AP / Expatica]