British insurer RSA has agreed a £7.2bn takeover from Intact Financial Corporation and the Scandinavian insurer Tryg.
Tryg will pay £4.2bn and take over RSA’s Swedish and Norwegian businesses, and Intact will pay £3bn to buy RSA’s Canadian, UK and Ireland, and international operations.
The two companies will co-own RSA’s Danish business. RSA shareholders will also receive an interim dividend of 8p per share, worth about £82m in total.
Furthermore, RSA’s Danish business will be managed by Intact while it explores strategic options for the business, including a sale or stock market floatation.
“The board of RSA is pleased to be recommending Intact and Tryg’s cash offer for the company, which delivers attractive, certain value for shareholders,” RSA chairman Martin Scicluna said.