EU clears GAUM acquisition by Berkshire Hathaway and Munich Re
The European Commission has cleared the 100% acquisition of Global Aerospace Underwriting Managers (GAUM) by Berkshire Hathaway and German reinsurance company, Munich Re.
The Commission concluded that the move would not significantly impede effective competition under the EU merger regulations and that on completion of the transaction GAUM will continue to face sufficient competitive constraints from both current and potential suppliers.
GAUM is headquartered in London. The firm insures international airlines and aircraft manufacturers and provides management services to aerospace insurance operations.
The business was originally a three-part joint venture between Munich Re, Berkshire Hathaway’s Northern States Agency subsidiary and Converium, the Swiss insurer.
It is understood that Converium’s merger with French insurance group, SCOR, last year has triggered a “change of control clause” that has given Munich Re and Berkshire Hathaway the right to exercise a buyout of SCOR’s stake in GAUM.
Berkshire Hathaway will be buying its additional share of GAUM through its Northern States Agency subsidiary but the cost of the SCOR buyout has not been disclosed.
Category: Companies News, Insurance News
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