ACE to acquire Chubb for USD28.3 bn

ACE Limited and The Chubb Corporation have announced that the boards of directors of both companies have unanimously approved a definitive agreement under which ACE will acquire Chubb.

Under the terms of the transaction, Chubb shareholders will receive USD62.93 per share in cash and 0.6019 shares of ACE stock. Based on the closing price of ACE stock on June 30, 2015, the total value is approximately USD124.13 per Chubb share, or USD28.3 billion in the aggregate. Upon closing of the transaction, ACE shareholders will own 70 percent of the combined company, and Chubb shareholders will own 30 percent.

The combination will create efficiencies that will provide flexibility for the company to invest in people, technology, products and distribution as well as improve the company’s competitive profile. Additionally, the balance sheet’s size and strength will elevate the combined company into the elite group of global P&C insurers.