XL positive on second quarter results
AXA swoops in to buy XL Group
XL Group has announced that its common shareholders have approved an agreement for AXA to acquire 100 percent of XL Group.
“We are pleased with our shareholders’ vote of confidence in supporting all matters, including the AXA transaction,” said Mike McGavick, XL Group’s chief executive officer (CEO). “In AXA we have found a like-minded partner committed to innovation and moving our industry forward. Becoming a part of AXA provides unrivalled opportunity to accelerate our strategy with new strength and dimension. Based on today’s vote, it is clear that our shareholders share this same vision and opportunity for XL Group.”
Total consideration for the planned acquisition would amount to approximately $15.3 billion, to be fully paid in cash. Under the terms of the transaction, XL Group shareholders will receive $57.60 per share. The transaction is expected to be completed during the second half of 2018 subject to customary closing conditions, including the receipt of required regulatory approvals.
Upon completion of the transaction, the combined operations of XL Group, AXA Corporate Solutions (AXA’s large commercial P&C and specialty business) and AXA Art will be led by Greg Hendrick, currently the president and chief operating officer of XL Group, who will be appointed CEO of the combined entity and join AXA Group’s management committee, reporting to AXA Group CEO Thomas Buberl. Following the closing of the transaction, McGavick will become vice-chairman of the combined P&C commercial lines operations and special adviser to Buberl to advise on integration-related and other strategic matters.
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