Prudential Plc (PRU), the United Kingdom's biggest insurer by market value, will buy the life insurance business of Thanachart Bank Plc, which is part-owned by Canada's Bank of Nova Scotia (BNS), for as much as 368 million pounds sterling (US$590 million).
Prudential will pay Bangkok-based Thanachart 358 million pounds in cash when the transaction is completed and a further 10 million pounds 12 months later, the London-based insurer said in a statement through the Singapore stock exchange. The transaction is subject to regulatory approval and is expected to close in the first quarter of 2013, the company said.
Prudential Life Assurance (Thailand), a unit of the UK insurer, will also establish an exclusive 15-year partnership with Thanachart Bank, the London-based company said in the statement. The joint venture will develop the group's bancassurance business, which is focused on distributing insurance products via banks.
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