Tokio Marine is closing in on its largest acquisition after months of reviewing Australian and Canadian targets.
According to the Financial Times, the Japanese insurer backed by Berkshire Hathaway, has scoped out a number of targets including Australia’s Insurance Australia Group (IAG) and Suncorp, as well as Canada’s Intact Financial Corporation.
Two people with direct knowledge of the matter said Suncorp had emerged as the preferred target, with the Canadian company deemed too large.
Berkshire Hathaway acquired a 2.5% stake in the Japanese company in March that also involved an agreement to co-operate on large-scale international M&A.
The plan is for the two groups to make sizeable acquisitions together that use Berkshire’s balance sheet alongside Tokio Marine’s operational expertise and its record in identifying takeover targets.
Tokio Marine said it would not comment on market speculation. Suncorp, IAG and Intact all declined to comment.
