France-based insurance firm AXA has signed an agreement to divest its AXA Bank Belgium to Crelan, a Belgian cooperative bank, for €620m ($688m).
Along with the sale, AXA and Crelan have also established a long-term P&C and Protection insurance distribution partnership, which extends the existing partnership between AXA Bank Belgium and AXA Belgium with the Crelan network.
AXA CEO Thomas Buberl said: “This transaction is another important step in the execution of our Ambition 2020 strategy, as we concentrate on businesses with critical scale and continue to simplify our business profile.
“We are extremely pleased to maintain our strong historical links through a continued partnership with AXA Bank Belgium, a key factor in this transaction, and to extend this partnership to Crelan’s network. Combining this with the transfer of Crelan’s insurance business to AXA, our leadership position in our preferred segments in Belgium will be further reinforced.”
AXA Group will acquire stake in Crelan Insurance
Under the terms of the agreement, AXA will sell 100% of AXA Bank Belgium to Crelan for a total consideration of €620m ($688m), of which a total of €540m ($600m) will be paid in cash, and 100% of Crelan Insurance worth €80m ($88m) will be transferred to AXA Belgium.
Crelan Insurance is the insurance company of Crelan, which provides protection insurance for the loans provided by Crelan.
In addition, AXA is expected to acquire a 9.9% minority equity stake in Crelan NV and AXA Bank Belgium, investing a total of €90m ($100m), fully financed by the transaction proceeds received from Crelan.
The transaction is expected to be completed subject to customary closing conditions, including regulatory approvals, and is expected to be closed in the second quarter of 2020.
Buberl added: “We are convinced that AXA Bank Belgium will strongly benefit from the consolidation with Crelan, leveraging on their respective scales and product offerings.
“I would like to thank AXA Bank Belgium’s management team and all the employees for their strong contribution and commitment over the years and wish them every success as part of the Crelan Group.”
