By Lisa Beilfuss
ACE Ltd. agreed to buy Chubb Corp. for $28.3 billion in cash and
stock, making the insurance tie-up one of the biggest deals this
year.
Chubb holders will receive $62.93 in cash and 0.6019 shares of
ACE, for a total value of about $124.13 a share. The price tag
represents a 30% premium over Tuesday's closing price.
The companies expect to complete the transaction during the
first quarter of next year.
ACE shareholders will own 70% of the new company, which will
operate under the Chubb name globally. Evan Greenberg, ACE chief
executive, will lead the combined company. Chubb CEO John Finnegan
will serve as executive vice chairman for external affairs of North
America and will assist with the integration.
Four independent directors from Chubb's board will be added to
the combined entity's board, the companies said.
By the third quarter post-closing, ACE said it would realize
annual expense savings of approximately $650 million pretax. The
deal will be immediately add to earnings and book value, ACE
said.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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