JAPAN’S DAI-ICHI LIFE TO BUY US FIRM FOR $5.7B

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TOKYO: Dai-ichi Life Insurance said on Wednesday it would buy US-based Protective Life for $5.7 billion in a record deal, the latest overseas takeover by a Japanese firm to counter a declining market at home. The company, one of Japan’s biggest insurers, said it would pay $70 per share and issue up to 250 billion yen ($2.4 billion) in new stock to help finance the deal. The price is a 34-percent premium on Protective Life shares when they closed on Friday in New York City, before reports of the deal emerged. “As a result of the acquisition, the company’s business composition in terms of premium income, profits and risk exposure will be more diversified globally, encompassing Japan, North America, and the Asia-Pacific region,” Dai-ichi said in a statement.

AFP

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