AXA announced that AXA Spain has entered into exclusive negotiations with Groupe des Assurances du Credit Mutuel (“GACM SA”) for the potential acquisition of its subsidiary Groupe Assurances du Credit Mutuel Espana (“GACM Espana”), a predominantly P&C and Health insurer in Spain.
Under the terms of the transaction, AXA will acquire GACM Espana for a cash consideration subject to potential contractual adjustment of EUR 310 million, representing a price-to-own funds multiple of 1x. The estimated price-to-earnings multiple is ca. 9x, after the implementation of expected capital and cost synergies.
“This transaction reflects our disciplined approach towards M&A in line with our strategy, enhancing our scale in one of our core European markets, with a focus on technical lines,” stated Frederic de Courtois, Group Deputy CEO.
“This acquisition will strengthen our leading position in Spain, and we look forward to growing our business while ensuring a smooth transition for both policyholders and employees,” Olga Sanchez, CEO, AXA Spain.
The proposed transaction is subject to customary closing conditions, including completing the information and consultation of the relevant works councils, as well as obtaining required regulatory approvals. The transaction is expected to close in the third quarter of 2023.