AXA makes latest move on broker market with SBJ bid

AXA has made an offer to purchase 100% of the share capital of SBJ Group.

The offer, which has been unanimously recommended by the SBJ board, has been put to SBJ shareholders. The price was not disclosed.

AXA said the acquisition, if successful, would complement and enhance its UK advisory and broking capability.

SBJ is the UK’s 15th largest broker and reported revenues in 2006 of £78.1m. It has four principal businesses, including SBJ UK, a major broker focused on the mid-corporate market, and a Lloyd’s broker. It also has an employee benefits consultancy and a claims services division.

AXA said the addition of SBJ UK would expand its SME broking offering, currently represented by Venture Preference, and enable it to offer more to larger corporate clients.

The businesses would continue to operate independently of AXA’s insurance company interests.

An AXA spokesman said the intention was that SBJ would initially sit alongside the other AXA businesses.

In the longer term integration was not ruled out.

“Over time we will look at how to take it forward,” the spokesman said.

Nicolas Moreau, AXA UK group chief executive, said: “This signals an exciting opportunity offering real benefits for both AXA UK and SBJ. I am confident that SBJ’s shareholders will respond positively to our offer.”

George Boden, chief executive of SBJ, said: “SBJ has grown substantially in both business and staff over the past five years and we foresee a period of further sustained growth as part of AXA which will provide firm support for our business plans.”