On October 9, the Competition Council of the Republic of Lithuania issued a permission for PZU SA to acquire Lietuvos Draudimas, the leader in the local insurance market. During the application process, PZU accepted an obligation to reduce its market share in some business lines to the levels from before the concentration date. The conditions will be fulfilled on the terms and conditions negotiated by PZU with the Lithuanian Competition Council (which is the equivalent of the Polish Office of Competition and Consumer Protection).
- Completion of the Lietuvos Draudimas transaction is the key step in the acquisition of Polish and Baltic assets from the RSA Group. It is also a milestone in the implementation of PZU SA' long-term strategy, which envisages international expansion in the region - says Andrzej Klesyk, President of the PZU SA Management Board.
The Lithuanian Competition Council issued its permission for the transaction today. One element of the transaction is to streamline the portfolio of PZU SA by removing part of the PZU Lithuania business. PZU has undertaken to limit its market shares in some business lines to the levels from before the date of the concentration.
- We are happy to receive the last of the approvals needed to acquire Lietuvos Draudimas. It wouldn't be possible but for the excellent cooperation with the Lithuanian authorities. The Lithuanian Competition Council has shown great professionalism, openness and speed. As a result, we are able to close this transaction clearly and focus on developing our business in the entire Baltics region - emphasizes Przemysław Dąbrowski, member of the PZU SA Management Board.
The acquisition of Lietuvos Draudimas is part of this year's asset acquisition from the British RSA Group. As part of the EUR 360 million transaction, PZU SA will take over Link4 Insurance, the leader of the direct insurance market in Poland, and the leaders in the Lithuanian market (Lietuvos Draudimas AB) and the Latvian market (AAS Balta). The deal also calls for the acquisition of the business of the Estonian Codan Forsikring Estonian A/S. The last transaction will be finalized pending approval from the local authorities.