US - American International Group (AIG) has completed its $23bn takeover of American General (AG), three months after UK-based Prudential conceded defeat in its own takeover bid for the firm.
AIG said: This acquisition represents an excellent strategic fit that creates new opportunities for both organisations. American General brings a strong asset accumulation and retirement savings business that complements our existing retirement savings business through SunAmerica. AIG is now one of the largest retirement savings providers, and we have an even stronger platform to capitalise on the significant growth we see for this global business in the years ahead.
The completion of the takeover, which received regulatory approval yesterday, ends a battle that began in March when the UK-based insurer and pensions provider announced that AG's board had accepted a $24.6bn buyout deal. Shortly after the Prudential announcement AIG launched its own bid.
In April, Prudential took legal action against AIG over what it called the illegal interference in the AG takeover deal. At the time, Prudential accused AIG of illegal ‘gun jumping’, violating Section 5 of the US Securities Act by making its bid public without the prior filing of a registration statement. The lawsuit also alleged that AIG made false and misleading statements regarding the Prudential bid and that it inadequately explained its own offer.
Prudential conceded defeat when AG announced that it would accept AIG's bid over its own. In order to receive the $600m termination fee, Prudential dropped the lawsuit against AIG.
By Geoffrey Ho
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