NN Group makes €2.4 billion bid for Delta Lloyd
NN Group made a 2.4 billion euro offer to acquire smaller rival insurer Delta Lloyd, the largest insurer in the Dutch market announced on Wednesday. The bid was sent to Delta Lloyd on Monday, Reuters reports. The NN Group offer amounts to 5.30 euros per Delta share. That is 29 percent higher than the Delta stock's closing price on Tuesday and 53 percent higher than its three month average, according to Reuters. "We believe there is a clear and compelling logic to bring consolidation to the Dutch insurance market through a combination of the businesses of NN Group and Delta Lloyd in a way that benefits both companies and its stakeholders", NN CEO Lard Friese said about the bid. According to him, the combined company can became a leading player in insurance, banking and asset management. It will befit from cost cutting and economies of scale. Delta Lloyed confirmed that it received the offer and is considering it. According to Reuters, NN has very strong capital ratios and saw its shares rise 19 percent over the past two years. Delta Lloyd shares fell 71 percent after issuing new share twice in the same period.