April 02, 2024 (MLN): EFU Life Assurance Limited (PSX: EFUL) has completed the transaction to acquire 100% of the shares in EFU Health Insurance Limited, as revealed in the company's filing on PSX today.
This comes as a significant development for Pakistan's Health Insurance and Health Takaful sector.
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 Competition Commission of Pakistan (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.
