Big South African life insurer seals R6.5 billion deal

Sanlam Life’s acquisition of Assupol Holdings has fulfilled all the necessary conditions, and the R6.5 billion transaction has now been successfully implemented.

Sanlam announced via SENS on Tuesday that all scheme conditions precedent have been fulfilled, and the transaction was successfully implemented on the scheme implementation date of 7 October 2024.

“Assupol represents a strong strategic fit within the Sanlam Group and will be integrated into the Retail Mass business in South Africa,” the company said. 

“The retail mass segment is a strategic priority for Sanlam, and we are committed to providing significant focus and support to ensure sustained growth in this market.”

Assupol is a 110-year-old South African insurance company listed on the Cape Town Stock Exchange. 

Through its subsidiary, Sanlam Life Insurance, Sanlam has now acquired 100% shareholding in Assupol, pending shareholder and regulatory approval.

This follows the announcement last year that Budvest, which holds 46.02% of Assupol’s securities, and the International Finance Corporation (IFC), which holds 19.41% of Assupol, intend to dispose of their respective shareholdings. 

Both had been shareholders in Assupol for 10 years.

Assupol chairman Dr Reuel Khoza said, “This acquisition by Sanlam will not only strengthen Assupol’s position in the market but also enhance our ability to continue providing exceptional value to our clients.” 

“We are excited about this new chapter and look forward to the benefits it will bring to both our employees and clients.”

This move will further strengthen the two companies’ position in the market and enhance their ability to provide comprehensive insurance solutions to their respective clients.

In August, the Competition Commission confirmed that the transaction is unlikely to substantially lessen or prevent competition in any market.

However, it set the condition that, to address employment concerns, the merged entity may not retrench employees as a result of the merger for three years following its implementation date.