Old Mutual, South Africa’s largest financial services group, is in preliminary talks to acquire Skandia Insurance Company of Sweden, Old Mutual confirmed on Friday.
In a statement, Old Mutual said discussions are at an early stage and may or may not lead to it making an offer for Skandia.
A spokesperson for Old Mutual confirmed that the discussions involve the acquisition of 100% of Skandia. Further announcements will be made in the event of any material developments, the company added.
Old Mutual’s latest results showed that the company has more than £1-billion to spend on a potential acquisition.
During its latest trading update, which was published on Wednesday, financial director Julian Robert confirmed the company is still interested in making an acquisition in the United Kingdom, after more than two years of being on the acquisition trail in that market. Skandia has a substantial presence in the UK market.
Old Mutual’s share price was down more than 3% on the news, which had been previously reported in Friday’s Financial Times. By 11.10pm, Old Mutual’s shares were quoted on the JSE Securities Exchange at R14,65, from R15,16 at Thursday’s close. — I-Net Bridge