Generali to buy Liberty Mutual’s Spanish unit in $2.5B all-cash deal

(Reuters) — Generali said Thursday it will buy the Spanish unit of Liberty Mutual for €2.3 billion ($2.51 billion), in a move aimed at strengthening its property/casualty segment.

“Generali is acquiring a profitable insurance business in three growing European markets with very attractive characteristics, that will create significant long-term value for all stakeholders,” CEO Philippe Donnet said in a statement.

Generali said it expects the acquisition to bring a reduction of 9.7 percentage points on the group’s regulatory solvency ratio.

The all-cash deal would allow the Italian group to become one of the main players in the Spanish insurance market, as well as enter Ireland and Northern Ireland, Generali said.

Citigroup and Credit Suisse acted as financial advisers for the transaction.