Atradius and Crédito y Caución Merger Confirmed

by Stewart Douglas

Story link: Atradius and Crédito y Caución Merger Confirmed

Atradius and Crédito y Caución have put an end to months of speculation through, confirming they will complete a merger that will allow them to “look forward to leading the global credit
insurance industry.” As the second and fourth largest credit insurers, they now anticipate
controlling 31% of the global credit insurance market post-merger.

The combined company, now operating as the Atradius Group, has annual revenues of roughly EUR 1.8 billion with a core focus on protecting businesses that provide products and services on credit terms. Their services include surety, credit insurance, collections, credit
information and a number of ancillary offerings. In an announcement made yesterday, it has been confirmed the new equity structure is as follows:

- 64.2% Grupo Compania Espanola de Credito y Caucion S.L.
- 25.0% Swiss Re
- 9.1% Deutsche Bank (subsidiary of DB Equity S.a.r.l.)
- 1.7% o Sal Oppenheim (subsidiary of Betrados B.V.)

Following the merger both separate brand identities will continue. This is, most likely, intended to allow each company to leverage their existing goodwill within their respective core markets.

An analyst at a leading New York research firm commented “this move has been on everyone’s lips since Crédito y Caución bought a stake in their, then, rival in early 2003. The transaction has taken longer than expected. At a time when money markets are less than buoyant, a
merger was a smart way to structure the deal. As M&A activity slows,creative solutions are needed.”

The combined entity can now score 52 million companies worldwide, makes 22,000 credit decisions daily and has operations in 40 countries – supported by around 160 offices. The company has a strong presence in Latin American, and other emerging markets, which is thought to be a particularly lucrative proposition for the company’s minor shareholders.