Financial services group Sanlam has successfully completed the acquisition of smaller rival Assupol after fulfilling all conditions of the transaction.
The deal officially took effect on October 7, according to a statement released by Sanlam on Tuesday.
“Assupol represents a strong strategic fit within the Sanlam group and will be integrated into the retail mass business in SA,” the statement noted.
“The retail mass segment is a strategic priority for Sanlam, and we are committed to providing significant focus and support to ensure sustained growth in this market,” the group added.
Initially announced in February, the acquisition marks the expansion of South Africa’s largest non-banking financial services group, which is taking over Assupol through its wholly owned subsidiary, Sanlam Life Insurance.
With a market cap of approximately R190 billion on the JSE, Sanlam operates across Africa, India, Malaysia, and several other countries, offering financial solutions that include life and general insurance, financial planning, retirement services, investments, and wealth management for both institutional clients and consumers.
Since Paul Hanratty took over as group CEO in 2020, Sanlam has pursued an aggressive acquisition strategy to bolster its insurance division.
Assupol, established in 1913 as a burial society, is the parent company of the Assupol group, which operates through two wholly owned subsidiaries: Assupol Life and Assupol Investment.
Assupol Life provides funeral cover, life cover, and pre- and post-retirement savings products to individual clients, as well as group schemes in South Africa. By June 2023, it had generated gross insurance premium revenue exceeding R5 billion.
This merger is viewed as a strategic move that will enhance the market presence of both companies and improve their capacity to deliver comprehensive insurance solutions.
The proposed acquisition was initiated after long-time Assupol shareholders Bidvest, which holds 46.02% of Assupol’s securities, and the International Finance Corporation (IFC), holding 19.41%, announced their intention to sell their respective stakes.
The Assupol board chose Sanlam as the potential buyer after careful consideration and evaluation of the benefits for all stakeholders, the company stated.
Assupol is listed on the Cape Town Stock Exchange and plans to continue operating under its own brand following the merger.