Published 19 June 2017
Cinven Capital Management (V) General Partner Limited of Guernsey has secured approval from the European Commission (EC) to acquire Italian life insurance firm Eurovita Assicurazioni.
The commission cleared the deal under the EU Merger Regulation after ruling out any violation of anti-competition laws arising from it.
Eurovita which is being divested by US private equity firm JC Flowers provides traditional life insurance policies and investment offerings exclusively through a network of nearly 50 local banks in Italy.
Founded in 1990 by Istituto di Credito delle Casse di Risparmio Italiane (ICCRI), Eurovita Assicurazioni along with AXA and other Casse di Risparmio was bought by JC Flowers three years ago.
Cinven on the other hand is a private equity firm holding various portfolio companies that are active across diverse sectors, including the life insurance segment, in several countries.
According to the EC, Cinven’s operations result in a slight overlap in the provision and distribution of life insurance products in the Italian market.
The equity firm’s Italian subsidiary Gruppo Flavia had entered into an agreement to acquire Eurovita in April for an undisclosed price. Through the acquisition, Gruppo Flavia expects to be in a position to broaden its product range and also implement relevant synergies in terms of operations, capital and distribution networks.
The EC stated: “The Commission concluded that the proposed acquisition would not raise competition concerns, given the companies’ moderate combined market positions resulting from the proposed transaction and the presence of a number of strong players in the market after the merger.”
A simplified merger review procedure was followed to examine the acquisition deal, said the EC.
Image: The EC has approved Cinven’s acquisition of life insurer Eurovita Assicurazioni. Photo: courtesy of David Castillo Dominici/Freedigitalphotos.net.