£8bn Beazley takeover deadline extended as Zurich weighs mega-deal

Insurance giant Zurich has been granted more time to decide whether it will make a formal offer to buy London-listed rival Beazley (Alamy/PA) PA Media

Swiss insurance giant Zurich has secured additional time to decide on a formal £8 billion takeover bid for London-listed rival Beazley. The "put up or shut up" deadline has been extended from February 16 to March 4 at 5pm, allowing Zurich to complete crucial due diligence while both parties hammer out the detailed terms of what would be a major industry consolidation.

The Takeover Panel consented to the extension after Beazley's board requested more time. Zurich is conducting what it calls «confirmatory due diligence» with support from Beazley executives, and the insurance giant stated the «process is progressing as planned».

The companies said in a statement: «The parties are simultaneously discussing the detailed terms of the transaction and progressing definitive transaction documentation. Accordingly, the board of Beazley has requested, and the Takeover Panel has consented to, an extension of the PUSU (put up or shut up) deadline.»

Deal Background

The £8 billion deal in principle was announced earlier this month, following Beazley's rejection of a previous £7.7 billion takeover approach by Zurich just two weeks prior. The current proposal represents a premium of almost 60% on Beazley's closing share price before Zurich's interest became public.

Beazley is a specialist insurer known for its burgeoning cyber cover offering, alongside professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.

Potential Combined Entity

If the transaction proceeds, the firms stated it would create a leading global specialty platform. The combined entity would generate around 15 billion US dollars (£11 billion) in gross written premiums, be based in the UK, and leverage Beazley's existing presence at Lloyd's of London.

However, both companies emphasized there is «no certainty» that a formal offer will ultimately be made. Zurich employs more than 63,000 people globally.

Note: This article was created with Artificial Intelligence (AI).