Allianz SE is close to scrapping a proposed $2.2 billion acquisition of Singapore’s Income Insurance following public backlash to the deal, people with knowledge of the matter said.
The German insurer is discussing dropping its pursuit of Income Insurance after it had difficulty finding a way to assuage government concerns, the people said. The companies could make an announcement as soon as the coming days, according to the people, who asked not to be identified because the information is private.
Allianz said in July it planned to buy at least 51% of Income Insurance in a deal that would elevate the German company to fourth spot among composite insurers in Asia, up from ninth. The transaction ignited criticism after it was announced, with many in Singapore complaining how it could lead to higher insurance premiums and betrays Income’s roots to help middle to lower-income Singapore workers.
The Singapore government said in October that it wouldn’t be in the public interest to allow the deal to proceed in its current form. Allianz said at the time it would work closely with relevant stakeoholders to consider revisions to the transaction structure.
No final decisions have been made, and Allianz could still opt to continue pursuing a deal, the people said. A representative for Allianz declined to comment. Calls to Income Insurance weren’t answered outside regular business hours in Singapore.
