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Insurer Aegon sells its Dutch branch to rival ASR. In exchange, Aegon’s parent company will receive 2.5 billion euros and nearly 30 percent of ASR’s shares, valued at 2.4 billion. The merger is likely to come at the expense of employees of both companies, which has angered unions.
It wrote that the Utrecht-based insurer was the second-largest in the Netherlands, up 40 percent in a single blow. FD this morning Only NN is larger. The combined value of Aegon and ASR is approximately 10 billion euros.
At the expense of jobs
The two companies together employ 6,700 people, of whom 2,900 work for Aegon and 3,800 for ASR. “Combining the two companies is expected to lead to significant cost and diversification benefits,” Aegon said in a press release. How many people will lose their jobs is yet to be announced. The merger will take three years, during which the insurers hope to be able to offer another job to as many people as possible, either inside or outside the company.
It was a ‘complete surprise’ to CNV Wagmensen. The union wants to consult with both companies as soon as possible about the consequences for employees. “There was a collective labor agreement at ASR yesterday, and we haven’t heard anything about it. So we’re really surprised by this news,” CNV negotiator Ike Wiersinga said.
ASR expects to save 185 million euros in costs with the acquisition. “Of course we want to know how it will happen. If it comes at the loss of jobs, we want the employees to be diverted to other jobs,” Weersinghe said.
Name changes to ASR
In the Netherlands, Aegon mainly sold non-life, life and health insurance and had banking and mortgage lenders as well as subsidiaries. ASR is the leading name for new insurance policies. Subsidiaries such as Knab and TKP will keep their names.
Aegon’s parent company’s focus is overseas. It has major brands in America and United Kingdom. Part of the money acquired by ASR will be invested there. A large portion also goes to shareholders and 700 million in debt repayments.
“Today’s announcement marks an important milestone in our company’s history and in our long-term ambition to build leadership positions in our chosen markets,” said Aegon CEO Lord Fries.
Dutch companies
Aegon was originally a Dutch company, but almost disappeared from our country due to the acquisition of ASR. However, the company will remain at its headquarters in The Hague and the insurer will not disappear from the Amsterdam Stock Exchange. The main building of the acquired Dutch branch will come under ASR’s roof in Utrecht.
ASR was founded in 2000 after a merger between Fortis, De Amersfoortscheid and Stade Rotterdam Versekeringen. In the credit crunch, in 2008, Fortis ran into serious financial problems and the company was nationalized. Since 2016 it has again become an independent listed company.
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