Apollo Set to Make $6.26bn Bid for UK’s Pension Insurance Corporation

Private equity firm Apollo Global (APO.N) is weighing a bid for UK’s Pension Insurance Corporation (PIC) in a deal that could value the company at about $6.26bn, Sky News reported on Wednesday.

Apollo Global and PIC did not immediately respond to Reuters’ request for a comment.

Earlier this month, Bloomberg News, citing sources familiar with the matter, had reported that PIC was exploring a sale.

Privately held PIC, a specialist insurer of defined benefit pension schemes, is owned by shareholders including Luxembourg-based Reinet Investments and CVC Capital.

A takeover of the PIC would mark Apollo’s largest ever acquisition in the UK and would give it a significant foothold in the country’s pensions market.

The PIC was created in 2004 to provide a safety net for defined benefit (DB) pension schemes that are in deficit. The government has been considering selling the company for several years, but has so far been unable to find a buyer willing to pay its asking price.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

This potential acquisition would be significant for Apollo Global, as it would expand their presence in the UK’s pension insurance market. PIC is a well-established company with a strong track record, and its acquisition would provide Apollo Global with access to a valuable customer base and a wide range of assets.

A potential acquisition of PIC by Apollo Global would likely be met with some scrutiny from regulators and pension fund trustees. However, if the deal is structured in a way that is beneficial to all parties involved, it could be a positive development for the UK’s pension insurance market.

The PIC is currently in the process of reviewing its strategic priorities and is expected to announce its plans for the future in the coming months.

Source: Reuters

Can’t stop reading? Read more