UK-based insurer and financial firm Old Mutual is reportedly set to start exclusive talks with the apparent buyer of its subsidiary in Italy.
The insurance company put up its Italian wealth arm for sale earlier this year and is planning to wrap up the deal by the end of August,
Reuters reported.
European private equity fund Cinven has emerged as the final buyer of the Old Mutual subsidiary, which it intends to acquire for about $335 million (£254.40 million), an unnamed source told
Reuters.
Cinven defeated rival bids from Luxembourg-based insurer Lombard International Assurance and US investment firms JC Flowers and Apollo.
The sale of the Italian business is expected to pave the way for a series of divestments as Old Mutual develops a wider plan to break up its business, cut costs and revamp earnings, according to
Reuters.
Last March, Old Mutual announced that it would split into four businesses: a South African bank, an emerging markets unit, a US asset manager and a British wealth manager.
According to the
Reuters report, Old Mutual said its break-up plan would be complete by the end of 2018.
The firm has appointed an executive, Rob Leith, to manage the split of the businesses.
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