Zurich and Beazley agree terms of £8bn takeover

(Sharecast News) - Beazley and Zurich Insurance said on Wednesday that they have reached an agreement in principle on the terms of an £8bn takeover of the Lloyd's of London insurer. Under the terms of the proposal, Zurich will pay 1,335p per share, which is a 59.8% premium to the closing share price on 16 January, the last business day before the offer period. The offer comprises 1,310p in cash and a dividend of 25p for the year ended December 2025.

Beazley had previously rejected offers of 1,280p a share and 1,230p a share, saying they "materially" undervalued the group.

Beazley said it has carefully considered the proposal, together with its advisers and that it is at a level that it would be minded to recommend to shareholders should a firm intention to make an offer be made.

"The transaction would combine two highly complementary businesses and would establish a leading, global specialty platform with circa $15 billion of gross written premiums, based in the UK which would also leverage Beazley's Lloyd's of London presence," the companies said in a joint statement.

Under UK takeover rules, Zurich has until 1700 GMT on 16 February to make an offer or walk away.