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Zurich makes provisional offer of $12 billion for RSA

Zurich Insurance Group has made a provisional acquisition offer of £5.6 billion ($12.3 billion) to UK-based RSA Insurance Group.

The RSA board has indicated it is “willing to recommend an offer at the level of the possible offer” to shareholders, subject to the resolution of “other terms of the offer”.

The offer is subject to completion of due diligence and agreement on the unspecified terms.

Under the UK’s Code on Takeovers and Mergers, the announcement of a possible offer does not commit Zurich to make a formal takeover offer.

Zurich has until September 22 to announce a firm intention to make an offer, or to walk away.

Meanwhile, the insurers will “continue their ongoing discussions regarding a possible offer for RSA”.

Zurich says it reserves the right to make an offer for RSA before the deadline and “a further announcement will be made as appropriate”.