Axa Spain, a division of the global insurance group, has entered into exclusive negotiations with Groupe des Assurances du Crédit Mutuel for the potential takeover of Groupe Assurances du Crédit Mutuel España (GACM España), its predominantly P&C and health insurance subsidiary in Spain.
In a statement on 18 October, Axa said it is expecting to acquire GACM España for a cash consideration of €310m, which represents a price-to-own funds multiple of 1x.
The estimate price-to-earnings multiple is around 9x, after the implementation of expected capital and cost synergies, the global insurer said.
The transaction, which remains subject to customary closing conditions, including finalising the information and consultation of the relevant work councils, as well as securing required regulatory approvals, is expected to close in the third quarter of 2023.
Frédéric de Courtois, deputy chief executive of Axa, said: "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."
Olga Sánchez, chief executive of Axa Spain, added: "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."
In 2021, GACM España reported gross written premiums of €400m and produced consolidated net income of €16m, mainly across retail P&C and health.
The transaction, subject to regulatory approvals, is expected to close in the third quarter of 2023.
