Goldman Sachs Want Benfield In Surprise Move

by Stewart Douglas

Story link: Goldman Sachs Want Benfield In Surprise Move

Investment bank Goldman Sachs has today been linked with a move to acquire reinsurer Benfield in a move that would see the US giant acquire a stronghold within the reinsurance market, according to UK press reports today.

The respected investment bank has been believed to have been in talks surrounding the acquisition of the reinsurance firm Benfield, in a move than many analysts would find surprising given previous reports.

The move is estimated to be worth around £700 million, or $1.5 billion, and would see Goldman Sachs enter the market with Benfield on an assets and custom basis, giving the investment bank a foothold in the domestic reinsurance market.

Mainstream media had reported on the prospective move almost two weeks ago, although initial talks between the two were said to have broken down irrevocably around a week in, with Benfield unwilling to budge in favour of Goldman Sachs.

However, today’s reports seem to be suggesting that the banking giant is one step closer to completing the acquisition which would open the Goldman Sachs portfolio up to an even wider target market through the reinsurance sector.

Goldman Sachs are not alone in their interest over Benfield, however, and the situation could ultimately see a threeway competition for the acquisition between Goldman Sachs and industry giants Marsh and Aon over the coming weeks.

Analysts are expecting that whilst the money on the table will have a significant part to play in the decision as to which company will seal the acquisition, Benfield are more likely to consider the whole package and the relevant management structure when taking any bids on board.

It is expected that the situation will continue to unfold over next week, by which points analysts are suggesting there should be some more imminent conclusion.