The European Commission has given clearance for Vienna Insurance Group AG Wiener Versicherung Gruppe’s (VIG) acquisition of Aegon’s businesses in Central and Eastern Europe.
Last year, Aegon, a provider of life insurance, pensions and asset management, reached an agreement to sell its Central and Eastern European operations to VIG for €830 million.The net proceeds represent a multiple of 2.6 times the book value on June 30th, 2020, and sees VIG acquire the firm’s insurance, pension, and asset management business in Hungary, Poland, Romania, and Turkey.
The €830 million proceed will lead to an increase in IFRS equity of €505 million of which €362 million will be recognised as book gain based on the balance sheet position as at June 30th, 2020.
VIG CEO Elisabeth Stadler commented: “The positive decision of the European Commission is an important step and we also consider the approval under competition law as a positive sign for further coordination.
“We are still in a constructive dialogue with the Hungarian Ministry of Finance to clarify possibilities for a positive conclusion of the acquisition.”
