According to a source acquainted with the situation, Allianz SE has canceled its planned acquisition of a 51% stake in Singaporean company Income Insurance Ltd. for $1.5 billion (US$1.58 billion) due to public resistance to the deal.
Allianz would have moved up from ninth place to fourth place as Asia’s largest composite insurer, but the idea was criticized in Singapore because to worries that it would take away from the company’s goal of offering reasonably priced insurance to workers with lower incomes.
The insider, who wished to remain anonymous, stated that the decision will be made public in the upcoming week. Allianz chose not to respond. Earlier Friday, Bloomberg reported that the German insurer was on the verge of canceling the agreement.
Established in the 1970s to provide insurance to the less fortunate segments of society, Income Insurance Ltd. currently boasts around 1.7 million clients and provides life, health, and property insurance.
While Allianz stated at the time that it would try to resolve its concerns, Singapore’s Prime Minister Lawrence Wong stated in October that the city-state would veto Allianz’s offer but remained open to a new agreement.
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