Fortis has acquired a controlling stake in Portuguese bancassurance company Banco Comercial Portuguges (BCP).
Following a deal worth €500m, Fortis now owns a 50% stake in the company, including management control of the bank's bancassurance activities.
The new joint venture will be called Millenniumbcp Fortis Insurance Group, said Fortis.
Fortis said the venture would control a 21% share of the Portuguese life market, 22% of the health insurance market, and 4% of the non-life market.
Fortis chief executive Anton van Rossum, said: “This acquisition is fully aligned with our strategy of expanding selective activities, such as bancassurance, outside the Benelux.
“Portugal is an attractive market with one of the highest growth potentials in Western Europe. This acquisition provides a unique opportunity to accelerate our growth in this region, faster than could be achieved organically.
“We expect a double-digit return on our investment, superior to our cost of capital, within two years.
“We are looking forward to further develop our strategic partnership with BCP, in other areas where joining forces could be mutually beneficial.”
Both parties expect to sign the final documentation in the very near future, said Fortis. Subject to the necessary approvals from the regulatory authorities, the transaction should be finalised before the end of 2004.
