AXA Spain, a division of the global insurance group, has entered into exclusive negotiations with Groupe des Assurances du Crédit Mutuel for the potential takeover of Groupe Assurances du Crédit Mutuel España (GACM España), its predominantly P&C and health insurance subsidiary in Spain.
AXA is looking to acquire GACM España for a cash consideration of €310 million, which represents a price-to-own funds multiple of 1x.
The estimate price-to-earnings multiple is ca. 9x, after the implementation of expected capital and cost synergies, says the insurer.
The transaction, which remains subject to customary closing conditions, including finalising the information and consultation of the relevant work councils, as well as securing required regulatory approvals, is expected to close in the third quarter of 2023.
