HONG KONG: China’s Fosun International Limited is making its first foray into the US insurance market and buying property and casualty insurer Meadowbrook, a deal that it said would help it secure funds for further acquisitions.
Fosun owner Guo Guangchang said in an exchange filing it would buy Meadowbrook Insurance Group for about $433 million. The cash deal of $8.65 per share represents a 24 percent premium over Meadowbrook’s closing price on Dec. 29, the companies added.
The deal, the latest in a buying spree by Fosun that has seen it spend more than $4 billion in two years, would also be the first full purchase of a US insurer by a Chinese company and comes as the Beijing government encourages local firms to extend their reach beyond emerging markets to Western financial firms.
Fosun said in the filingThe Group regards the development of insurance business as a major approach to access long term high quality capital.
