US annuities and life insurer Fidelity & Guaranty Life has extended the deadline for its USD$1.57bn sale to China’s Anbang Insurance Group, the former said on February 09.
The deadline has been moved to April 17. It will be further extended to May 31 if Anbang secures a public hearing with Iowa’s financial regulator by April 17.
Fidelity added that it can now “solicit, respond to, evaluate and negotiate any competing offers,” provided that it is not permitted to enter into a definitive agreement with any such competing offers during the extension period.
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Anbang needs approval from regulators in New York and Iowa, where Fidelity has businesses.
The US Committee on Foreign Investment has approved the deal. Reuters said getting regulatory approval in New York had been problematic, as the New York Department of Financial Services had sought more details about Anbang’s funding and shareholder structure. Anbang was not able to immediately provide these, a Reuters source said.
Anbang withdrew an application it made in New York last year for regulatory approval and has not re-applied, a spokesman for New York’s Department of Financial Services said this week.
“The Company and Anbang continue to work to close the merger, subject to satisfaction or waiver of all required closing conditions,” Fidelity said.
Anbang serves over 20 million customers and has assets exceeding RMB800bn (about USD116.23bn). Its businesses include property and casualty insurance, life insurance, health insurance, and pension insurance, among others.
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