IAG SAYS CHINA PACIFIC PURCHASE HAS PROGRESSED

Insurance Australia Group (IAG) said today that its bid to buy a 24.9% stake in China Pacific Property Insurance (CPPI), which has a 12% p/c market share in China, had reached the regulatory review stage. “Negotiations have progressed to the stage that draft transaction agreements have been confirmed”, IAG said. The IAG bid was announced in February when a memorandum of understanding was signed between the two companies. IAG is expected to pay between A$350m and A$375m for its stake. IAG said that the regulatory approvals could take up to four months to conclude.