ACE has entered into a definitive agreement to acquire The Chubb Corporation and its subsidiaries.
Under the terms of the transaction, Chubb shareholders will receive $62.93 per share in cash and 0.60 shares of ACE stock.
Based on the closing price of ACE stock on 30 June 2015, the total value is approximately $124.13 per Chubb share, or $28.3 billion on aggregate. This is the equivalent of $125.87 per Chubb share using ACE’s 20-day volume weighted average share price for the period ending 30 June 2015.
Upon closing of the transaction, ACE shareholders will own 70 percent of the combined company, and Chubb shareholders will own 30 percent. The consideration represents an approximately 30 percent premium to Chubb’s closing price of $95.14 on 30 June 2015.
The close of the transaction is expected during Q1 of 2016, pending approval of ACE and Chubb shareholders, and regulators, as well as the expiration or termination of the applicable waiting period required under US anti-trust regulation.
