UK-based insurance giant RSA has accepted a £7.2 billion cash offer from Canada’s Intact Financial and Denmark’s Tryg, marking one of the biggest takeover bids in Europe this year.

RSA said in a statement on Wednesday that its directors had backed the Intact-Tryg bid unanimously, and recommended that shareholders vote in favour of the offer.

The deal values RSA at 685 pence per share, representing a 50% premium on the company’s share price prior to news of the consortium’s takeover bid breaking earlier in November. If approved by RSA shareholders, the company would be split between Intact and Tryg, with Intact holding on to RSA’s operations in Canada, the UK and elsewhere, while Tryg would take over its businesses in Norway and Sweden. The two firms would co-own RSA’s Danish unit.

Tryg will pay £4.2 billion for its portion of the business, while Intact will pay £3 billion.

RSA is best known in the UK for its “More Than” brand, which provides home, commercial and motor insurance. The firm also maintains large operations in Ireland, Scandinavia and Canada.

Martin Scicluna, chairman of RSA, urged investors to back the offer. “We believe that our staff, our businesses and our customers can prosper under the stewardship of Intact and Tryg, two great businesses with long histories and strong reputations,” he said.

The chief executives of Intact and Tryg welcomed RSA’s acceptance of the deal and the opportunities for expansion that it is likely to provide their businesses.


RSA’s largest shareholder, Cevian Capital, also said that it supported the takeover. “We assess that the long-term competitiveness of RSA’s business will benefit from combining with Tryg and Intact, the best-performing non-life companies in their respective geographies,” said Christer Gardell, Cevian’s co-founder and managing partner.

Shares in RSAS rose 4% in early trading on Wednesday following the news, reaching 673 pence apiece.