RSA Insurance agrees £7.2bn takeover by Canadian and Danish buyers

More Than owner RSA Insurance has agreed to a takeover by Canadian and Danish buyers in a deal valuing the FTSE 100 firm at £7.2 billion.

Canada’s Intact Financial Corporation and Danish insurer Tryg said they had settled on final terms for the cash offer, which will see the consortium pay 685p a share, as well as an 8p a share dividend payout.

Under the terms of the deal, Intact will keep RSA’s UK, Canadian and international operations, while Tryg will take on the Swedish and Norwegian businesses and they will both co-own the Danish arm.

RSA’s Scandinavian business will be spun-off.

The price marks a 51% hike on RSA’s closing share price on November 4 – the day before plans for the offer were first revealed.

Tryg will pay £4.2 billion of the purchase price and Intact will pay £3 billion.

RSA said its board unanimously backed the deal.