By Olivia Bugault 
 

Exor NV said Tuesday that its $9 billion deal with French insurer Covea for the sale of reinsurer PartnerRe has been scrapped after Covea refused to buy the company on the agreed terms.

The holding company controlled by Italy's Agnelli family said that Covea had attempted to change the terms of the memorandum of understanding agreed on March 3 and therefore Exor says Covea has refused to honor its commitment.

"In attempting to renegotiate the agreed deal terms, Covea has never suggested the existence of a material adverse change, including pandemic risk, or any other issues at PartnerRe that would explain its refusal to honor its commitments under the MoU and Exor believes that no such basis exists," it said.

In a statement, Covea said: "In light of the current unprecedented conditions and significant uncertainties threatening the global economic outlook, Covea has indicated to Exor that the context does not allow the contemplated acquisition of PartnerRe to be carried out on the terms initially envisaged."

PartnerRe should not be significantly hit by the coronavirus crisis, Exor said. "The board therefore reiterated its strong belief that a sale of PartnerRe on terms inferior to those established in the memorandum of understanding fails to reflect the value of the company," it said.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

May 12, 2020 13:46 ET (17:46 GMT)

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