Chinese Financial Supervisory Commission (FSC) has granted approval to the planned acquisition of Taiwan Life Insurance by CTBC Financial Holding, which was initially announced in October 2013.
Following approval, CTBC Financial is expected to complete the transaction valued at approximately $890m by 30 June 2014. CTBC is the parent company of Chinatrust Commercial Bank.
As per the terms of the agreement announced in October last year, CTBC will take over the insurance firm through a share swapping arrangement.
In a statement, both the firms had said that each share of Taiwan Life will be exchanged for 1.44 shares in CTBC Financial.
CTBC stated that it will issue new shares for the transaction, adding that the deal will not affect the existing policy subscribers of Taiwan Life.
The company would retain all employees of Taiwan Life with their compensation packages and work assignments remaining same for the next two years.
With the acquisition of Taiwan Life, which had NT$449.7bn ($14.86bn) in assets as of 31 December 2013, CTBC aims to position itself among the ten leading insurance carriers in the country.
The FSC had earlier last week approved a plan by CTBC Bank to acquire Tokyo Star Bank for an equivalent of JPY53bn ($530m) in the first takeover of a Japanese commercial lender by a foreign bank.
Image: Chinatrust Commercial Bank head office in Taipei City, Taiwan. Photo: courtesy of ???.