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French banking titan BNP Paribas is expanding its insurance portfolio through its subsidiary BNP Paribas Cardif by purchasing a 9% stake in Belgian multinational insurer Ageas. The acquisition, valued at approximately €730 million ($777 million), is set to take place as the banking giant secures a significant portion of Chinese conglomerate Fosun Group's holdings in Ageas.

BNP Paribas to buy 9% stake in Ageas For €730M : Strategic Sale

Fosun Group formalized the agreement to sell almost 15.4 million shares of Ageas to BNP Paribas Cardif last Friday, while the deal’s counsel details remain undisclosed. Fosun's decision to divest was positioned as a strategic move for the benefit of its investors, focusing on streamlining its portfolio and sharpening its core business strategy. The Chinese group retains approximately two million Ageas shares post-transaction.

Two-Step Acquisition

BNP Paribas detailed that the acquisition will occur in two phases. Initially, Fosun will relinquish 4.8% of Ageas shares in the coming days. The remaining portion will be transferred pending mandatory regulatory approvals.

BNP Paribas to buy 9% stake in Ageas For €730M : Longstanding Partnership

Ageas and BNP Paribas have an established partnership in Belgium's insurance sector through their joint ownership of AG Insurance, the country's leading insurance firm. BNP Paribas holds a 25% stake, while Ageas controls the other 75%. BNP Paribas emphasized that this purchase would not impact its historic alliance with Ageas.

Recognition of Long-Term Potential

Ageas acknowledged Fosun's sale and expressed satisfaction in BNP Paribas' commitment. "Ageas is pleased to see BNP Paribas recognize, through this investment, the value of its partnership for the long term and the potential of the company going forward," the insurer stated.

As one of the top insurance providers in Europe and Asia, Ageas offers a broad range of life and non-life insurance products to retail and corporate customers.