Dallas, Texas 07/01/2015 (Financialstrend) – Chubb Corp (NYSE:CB), the once one of the largest property insurer in the United States, has now been sold to Ace Limited (NYSE:ACE), a global insurance provider incorporated in Zurich. Both the companies announced the news of acquisition today. The financial details have not been disclosed in the press release as yet. However, it is confirmed that the acquisition cost $28.3 billion in cash and stock.
The New Combination
The Board of Directors of both the companies have unanimously decided to an agreement that allowed the acquisition of Chubb Corp (NYSE:CB). The shareholders of the company will receive $62.93 in cash along with 0.6019 shares of ACE Limited (NYSE:ACE). If the stock value of Ace Limited is considered as of 30 June, then each shareholder of the acquired company is entitled to $124.13 in total.
The transaction will leave ACE shareholders with 70% ownership of the combined company that will be formed upon completion of the deal whereas Chubb Corp shareholders will be eligible for 30% ownership in the new combination. According to the press release, both the companies will form a bigger insurance giant that will strive to be a global leader in the insurance sector.
From Present To Future
Chubb Corp has been one of the popular insurance providers in the United States. It has received several awards for its business. The company was founded in 1882 and has headquarters in New Jersey. It is unclear why this successful corporation that boasted the slogan “Never Compromise Integrity” decided to sell out to a global insurance company.
Ace Limited has enjoyed success with wide variety of insurance products across the globe. The company operates in more than 50 countries in the world. It employees the work force of more than 21,000 people. The recent acquisition has enabled the company to restructure its growth with focus on complementary products. The combined company is expected to deliver greater value and growth as compared to the separate companies. It will be interesting to see which insurance products are launched following the completion of acquisition.