Allianz to buy 20.57% of Euler Hermes that it doesn’t already own.

Allianz said it will open a share offer for Euler Hermes on Monday 15 January, after getting clearance from French markets regulator AMF.

Allianz is offering €122 per share shares for the 20.57% of the trade credit insurer that it doesn’t already own. The offer will close on 13 February. The offer for the 8.8 million Euler Hermes shares will cost Allianze €1.1bn. 

The deal will advance Allianz’s strategy to invest in profitable businesses and strengthen its position in core home markets, and in property and casualty in particular, the German insurer said. Euler Hermes is the leading global trade credit insurer and a core component of Allianz global lines business.

The offer represents a 20.7% premium over Euler Hermes’ closing price on 24 November, the day before Alllianz first announced its intention to bid.