UPDATE: CNP, Barclays Set Up Southern Europe Insurance JV
June 25 2009 - 1:07PM
Dow Jones News
French insurance group CNP Assurances (CNP.FR) will pay up to
EUR590 million for a 50% stake in Barclays PLC's (BCS) Spanish and
Portuguese life insurance unit as the two groups set up an
insurance partnership in southern Europe, the companies said
Thursday.
The two groups will start new life insurance operations in Italy
as part of a 25-year alliance which will cover the marketing and
distribution of life insurance and pension products, according to
statements from the two companies.
The products will be sold through Barclays' retail network in
Spain, Portugal and Italy, Barclays said.
CNP will take management control of the joint venture and will
pay Barclays EUR140 million in cash on completion of the deal for
the 50% stake in Barclays Vida y Pensiones Compania de Seguros.
A further cash payment of up to EUR450 million will be payable
to Barclays over a 12-year period and will depend on the
performance of the joint venture and Barclays' branch openings,
Barclays said.
The transaction won't have any "material impact" on CNP
Assurances' solvency ratio, the insurer said.
Barclays said it will reinvest the proceeds from the deal in
"developing its businesses in Spain, Portugal and Italy."
-By Jethro Mullen, Dow Jones Newswires; 33 1 4017 1738;
jethro.mullen@dowjones.com