EFU Life Assurance gets approval to acquire 100% stake in EFU Health Insurance

March 11, 2024 (MLN): In a significant development for Pakistan's Health Insurance and Health Takaful sector, the Competition Commission of Pakistan (CCP) has approved the acquisition of 100% shareholding of EFU Health Insurance Limited by EFU Life Assurance (PSX: EFUL).

The acquirer, EFU Life Assurance is engaged in the life insurance business including ordinary life business and pension fund business. Whereas, the target company, EFU Health Insurance Limited, is an unlisted public limited company and its principal activities include selling health insurance and health takaful cover in Pakistan.

EFU Life Assurance is acquiring a 100% shareholding of EFU Health from EFU Services (Private) Limited and six other shareholders.

Accordingly, EFU Life will be issuing its own ordinary shares at a swap ratio to the current shareholders of EFU Health.

Following the Phase 1 Review, the CCP determined that the proposed transaction would not lead to the acquirer attaining dominance in the relevant market after the completion of the transaction. Consequently, the merger has been authorized.

The approval of the acquisition of EFU Health by EFU Life reflects the ongoing consolidation and strategic realignment within the industry, which could potentially lead to improved services and offerings for customers.

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