NN acquires Delta Lloyd in €2.5 billion deal

Delta Lloyd is being acquired by NN Group. The insurance companies came to an agreement on a takeover amount of 2.5 billion euros, the largest takeover in the Dutch insurance industry ever, the Volkskrant reports.

NN Group increased its offer to 5.40 euros per Delta Lloyd share after Delta Lloyd rejected the previous offer of 5.30 euros.

"We looked at all the alternatives and this is the best option", Delta Lloyd CEO Hans van der Noordaa said in a statement on Friday. "It is good to put an end to the uncertainty about our future and it provides security for our policy holders."

The Delta Lloyd shareholders still have to approve the takeover. Van der Noordaa expressed full confidence in their support.

The two insurers expect to together be a strong player in the fields of pensions, insurance and asset management in the Netherlands and Belgium. They also expect to have a strong financial position once merged.

How Delta Lloyd will work under the wings of NN has yet to be determined. Van Noordaa did announce that he will step down as CEO of Delta Lloyd after the completion of the deal, expected to be in the second quarter of next year.

Trade unions worry that the merger will mean many jobs lost. NN currently employs 11,500 people and Delta Lloyd employs 4,150. Both companies would have had to cut jobs in the coming years without the merger.