Ace Ltd. To Buy Chubb Corp for $28.3 billion, Shares Surge

In what is being seen as a continuation of consolidation in the insurance sector it was reported today that Ace is acquiring The Chubb Corp in a cash and stock deal valued at $28.3 billion that many believe would boost its international presence. According to the details of the deal, shareholders of Chubb would receive $62.93 per share in cash and 0.6019 shares of Ace Ltd stock. The price is a 30 percent premium over Chubb’s closing price on Tuesday. Shares of Chubb were one of the biggest gainers in early morning trade today jumping by close to 35 percent on the back of heavy volumes which is being seen as a bullish sign. Shareholders of Ace Ltd would own 70 percent of the combined business and the rest would be owned by Chubb shareholders.

The combined company intends to use the Chubb name and would have its main offices in Zurich, Switzerland where Ace is based. Ace Chairman and CEO would serve in those roles for the combined company. Chubb President will serve as executive Vice-chairman for external affairs of North America. Many analysts believe that the acquisition would immediately add to the earnings per share of the company as there would be savings of close to $650 million. The board of directors of both companies have unanimously approved the transaction which is targeted to be closed by the first quarter of 2016 post regulatory and shareholder approvals.

Shares of Ace rose by close to 11 percent during the early morning trading session today and have given a buy signal on the charts which is indicative of the strong buying interest present at current levels. Analysts on the street are quiet positive about the deal and believe that the decision is one in the right direction for the company.

SEOPrix.com is a professional SEO company in New York, we offers high quality guest post, press release submission, link building, content marketing and more SEO services.

Latest articles

The Best Cryptocurrency Trading Platform 2022

Despite recent setbacks, cryptocurrencies remain a popular new asset class for investors. Bitcoin beats TikTok, Apple, and the NFL in top Google...

The Smart Lights and Best Smart Bulb App Grouping

The best smart bulb groups have been debated often since home automation systems began becoming ever more...

Party Supplies – College Dorm Parties

Our online party supply shop has the best party supplies. You can find party supplies for kids,...

The Benefits of ND Drawing Dies

Many different applications and mechanisms use wires and cables all around the world. Quality, efficiency, accuracy, and...

Similar articles