ping-an-abandons-fortis-deal

Ping An abandons Fortis deal

The collapse of the deal stalls the Chinese insurerÆs plan to become a financial conglomerate, but the market welcomes the development.

By Daniel Inman

October 02, 2008

Ping An Insurance Company yesterday confirmed that it has terminated a $3.3 billion agreement to purchase 50% of Fortis GroupÆs global asset management business, Fortis Investments. In a press release, the Chinese insurance company said the decision was a mutual agreement made ôgiven current turbulent market circumstancesö. This is the first major deal in Asia to be directly scuppered by the financial sector fallout caused by the credit crunch.

The cancellation of the deal, which was agreed in March, comes after a partial nationalisation of Fortis earlier this week when the governments of Belgium, the Netherlands and Luxembourg stepped in to support the bank. Together they injected a total of Ç11.2 billion $15.4 billion in...

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